/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/081020.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Monday, October 20, 2008, Vol. 9, No. 208 Headlines A U S T R I A CIRO LLC: Claims Registration Period Ends October 27 STIBO LLC: Claims Registration Period Ends October 27 THEODOR DUCHOSLAV & CO: Claims Registration Period Ends Nov. 4 THEODOR DUCHOSLAV: Claims Registration Period Ends November 4 B E L G I U M PORTOLA PACKAGING: Court Confirms Pre-Packaged Plan C Y P R U S RESERVE INVEST: Moody's Lowers Currency Issuer Rating to B3 C Z E C H R E P U B L I C KARLOVARSKY PORCELAN: Granted Creditor Protection in Prague SKLO VOHEMIA: Granted Creditor Protection in Prague D E N M A R K * Danish Guarantee Scheme Helps Provide Liquidity, Moody's Says F R A N C E ATARI INC: Seeks to Deregister Unsold Shares Following Merger HERITAGE WORLD: 2008 Balance Sheet Upside Down G E R M A N Y ALCION GMBH: Claims Registration Period Ends October 28 ARES GMBH: Claims Registration Period Ends October 28 BEIERSDORFER LANDSCHAFTS: Claims Registration Ends October 28 BURGER HOCH: Claims Registration Period Ends October 28 CHIQUITA BRANDS: S&P Ratings Unmoved by Finding Firm Joined Cartel DOLE FOOD: S&P Ratings Unmoved by EU Finding Firm Joined Cartel FRESH DEL MONTE: S&P Ratings Unmoved by Finding Firm Joined Cartel GIAB MBH: Claims Registration Period Ends October 24 GREENHOUSE GMBH: Claims Registration Period Ends October 24 HUMBOLDT PROJEKT: Claims Registration Period Ends October 24 KHANS GASTRO: Claims Registration Period Ends October 24 LEAR CORPORATION: Moody's Holds 'B2' Corp. Family Rating VYSUAL GMBH: Creditors Meeting Slated for October 28 * GERMANY: Landesbank Poised to Use Billions of State Rescue Funds I C E L A N D * ICELAND: Multi-Billion Euro Loan Plea from Russia Under Review I R E L A N D TOYMASTER: Goes Into Voluntary Liquidation K A Z A K H S T A N BTA BANK: US Dept. of Agriculture Provides US$120 Million Loan HB TEKNIK: Creditors Must File Claims by November 28 IRBIS-LTD LLP: Claims Deadline Slated for November 26 IRKAZ LLP: Claims Filing Period Ends November 28 MEREY-STROY-EK LLP: Creditors' Claims Due on November 28 PLUS ENGENEERING: Claims Registration Ends November 28 PROM TECH INDUSTRIYA: Creditors Must File Claims by November 28 VLADI-TRUST SK: Claims Deadline Slated for November 28 WOOD-BANK CO: Claims Filing Period Ends November 28 K Y R G Y Z S T A N AQUA-NUR LLC: Creditors Must File Claims by November 14 FORTRESS INVESTMENT: Fights to Keep German Unit Afloat N E T H E RL A N D S ING GROEP: Inks Deal with Dutch Gov't to Strengthen Core Capital P O R T U G A L SOVEREIGN BANCORP: Banco Santander to Acquire Firm R U S S I A ALAPAYEVSKIY BOILER: Creditors Must File Claims by December 3 AVENUE OSTEUROPA: Moody's Puts B3 Rating on Review for Downgrade BETON LLC: Creditors Must File Claims by December 2 OPIN JSC: Moody's Changes B1 Rating Outlook to Negative LSR GROUP: Moody's Changes B1 Rating Outlook to Negative MIRAX GROUP: Moody's Puts B2 CFR on Review for Possible Downgrade MOSCOW INTEGRATED: S&P Assigns BB+/B Counterparty Credit Ratings RENAISSANCE CAPITAL: Moody's Reviews Ratings for Poss. Downgrade SERGEYEVSKIY COAL: Creditors Must File Claims by November 10 SISTEMA-HALS OJSC: Clarifies Speculation on Exposure to Crisis SISTEMA-HALS: Moody's places Ba3 CFR on Review for Downgrade UNECHSKIY VEGETABLE: Creditor Must File Claims by November 10 ZEM-STROY-TREST: Kaliningrad Bankruptcy Hearing Set December 1 S W E D E N FORD MOTOR: Assures Clients of Auto Loans FORD MOTOR: S&P Places Ratings on 9 Transactions Under Neg. Watch S W I T Z E R L A N D BAHSOUN INTERNATIONAL: Oct. 31 Set as Deadline to File Claims BEROG HANDEL: Deadline to File Proofs of Claim Set Oct. 31 E. GEBISTORF JSC: Creditors Have Until Oct. 31 to File Claims GENERAL MOTORS: Launches Auto Loan Initiative GENERAL MOTORS: Appoints James Taylor as Hummer CEO GENERAL MOTORS: Wants Merger Deal With Chrysler This Month SIMPEX PHARMATECH: Proofs of Claim Filing Deadline is Oct. 31 SP PRODUKTION: Creditors Must File Proofs of Claim by Oct. 31 SWISS-MEMO MANAGEMENT: Creditors' Claims Due by Oct. 31 U K R A I N E AVIRONT LLC: Creditors Must File Claims by October 22 BELON COMUNICATION: Creditors Must File Claims by October 22 TERLAND-AGRO LLC: Creditors Must File Claims by October 22 ENTERPRISE ABRIS: Creditors Must File Claims by October 22 FLORESENCE UKRAINE: Creditors Must File Claims by October 22 LIK CJSC: Creditors Must File Claims by October 22 LINEN FOREVER: Creditors Must File Claims by October 22 NAFTOGAZ: Bondholders' Meeting Set Oct. 28; Seeks Bond Waiver NEWS-SERVICE LLC: Creditors Must File Claims by October 22 PRILADAVIA LLC: Creditors Must File Claims by October 22 REGION BUILDING: Creditors Must File Claims by October 22 VALMI-KIEV LLC: Creditors Must File Claims by October 22 YUKANT-COMPANY LLC: Creditors Must File Claims by October 22 YUZHNY LLC: Creditors Must File Claims by October 22 ZARIA OJSC: Creditors Must File Claims by October 22 * S&P Puts Ukrainian Banks' B+/B Credit Ratings on Negative Watch * UKRAINE: President Must Trash Election to Get IMF's Assistance U N I T E D K I N G D O M AMERICAN INT'L: Maurice Greenberg Wants to Change Gov't Loan Terms AMERICAN INT'L: David Herzog Replaces Stephen Bensinger as CFO AMERICAN INTERNATIONAL: Maurice Greenberg Discloses 10.36% Stake ARTISAN MIDLANDS: Appoints Andrew Appleyard as Administrator ASCALADE COMMS: Reports Status Update on Default Announcement CESTRUM CONSERVATORIES: Taps Joint Administrators from PwC LUXFER HOLDINGS: Moody's Changes Outlook from Stable to Negative ORIENTAL FOOD: Calls in Joint Administrators from KPMG QUEBECOR WORLD: Posts US$11.6MM Net Loss in Period Ended August 30 ROSEBYS GROUP: Closes 32 Retail Outlets; 173 Jobs Affected SCOTTISH RE: S&P Retains Ratings Under Negative CreditWatch SEA CONTAINER: To Forgive US$3 Million in Intercompany Receivables TP ATHERSTONE: Brings in Joint Administrators from KPMG TWO-WHEELS GMBH: Claims Registration Period Ends Oct. 22 VELLY MITTE: Claims Registration Period Ends October 24 VILLA KARLSBAD: Claims Registration Period Ends Oct. 24 * S&P Junks Ratings on 27 Lehman-Exposed European CDO Transactions * KPMG Notes Effects of Market Turmoil on UK Transport Sector * KPMG Notes Impact of Credit Crunch on Global Shipping Sector * PwC Suggests Three-Point Approach to UK Pension Management * BOND PRICING: For the Week Oct. 13 to Oct. 17, 2008 ********* ============= A U S T R I A ============= CIRO LLC: Claims Registration Period Ends October 27 ---------------------------------------------------- Creditors owed money by LLC Ciro (FN 265126t) have until Oct. 27, 2008, to file written proofs of claim to the court-appointed estate administrator: Dr. Christof Herzog 10.-Oktober Strasse 12 9560 Feldkirchen Austria Tel: 04276/38 676 Fax: 04276/38676-22 E-mail: rechtsanwalt.herzog@aon.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 11:00 a.m. on Nov. 3, 2008, for the examination of claims at: Land Court of Klagenfurt Meeting Room 225 Second Floor Klagenfurt Austria Headquartered in Himmelberg, Austria, the Debtor declared bankruptcy on Oct. 2, 2008, (Bankr. Case No. 41 S 102/08k). STIBO LLC: Claims Registration Period Ends October 27 ----------------------------------------------------- Creditors owed money by LLC Stibo (FN 66327s) have until Oct. 27, 2008, to file written proofs of claim to the court-appointed estate administrator: Mag. Dieter Helbok Kirchplatz 11/1 6973 Hoechst Austria Tel: 05578/77722 Fax: 05578/77722-4 E-mail: d.helbok@vol.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:20 a.m. on Nov. 6, 2008, for the examination of claims at: The Land Court of Feldkirch Meeting Room 45 First Floor Feldkirch Austria Headquartered in Hoechst, Austria, the Debtor declared bankruptcy on Sept. 30, 2008, (Bankr. Case No. 13 S 38/08f). THEODOR DUCHOSLAV & CO: Claims Registration Period Ends Nov. 4 -------------------------------------------------------------- Creditors owed money by LLC Theodor Duchoslav & Co. KG have until Nov. 4, 2008, to file written proofs of claim to the court- appointed estate administrator: Ing. Mag. Peter Bubits Elisabethstrasse 2 2340 Moedling Austria Tel.: 02236/42210, Fax: 02236/42210-25 E-Mail: peter.bubits@bkb-partner.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:00 a.m. on Nov. 18, 2008, for the examination of claims at: The Land Court of Wiener Neustadt Room 15 Wiener Neustadt Austria Headquartered in Wiener Neudorf, Austria, the Debtor declared bankruptcy on Sept. 8, 2008, (Bankr. Case No. 11 S 97/08p). THEODOR DUCHOSLAV: Claims Registration Period Ends November 4 ------------------------------------------------------------- Creditors owed money by LLC Theodor Duchoslav have until [date], to file written proofs of claim to the court-appointed estate administrator: Ing. Mag. Peter Bubits Elisabethstrasse 2 2340 Moedling Austria Tel.: 02236/42210, Fax: 02236/42210-25 E-Mail: peter.bubits@bkb-partner.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 a.m. on Nov. 18, for the examination of claims at: The Land Court of Wiener Neustadt Room 15 Wiener Neustadt Austria Headquartered in [city], Austria, the Debtor declared bankruptcy on Sept. 8, 2008, (Bankr. Case No. 11 S 99/08g). ============= B E L G I U M ============= PORTOLA PACKAGING: Court Confirms Pre-Packaged Plan --------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware found that Portola Packaging, Inc.'s second amended prepackaged plan of reorganization had met the statutory requisites. Accordingly, the Court confirmed the Plan. Confirmation of the pre-packaged plan followed Portola obtaining an exit financing commitment from Wells Fargo Foothill, LLC and Regiment Capital Special Situations Fund IV, LP for a US$66 million senior secured credit facility. Concurrently, Wayzata Investment Partners LLC committed to provide up to US$30 million in second-lien financing to refinance the existing second-lien debt. Having obtained confirmation of its plan, Portola remains on track with its current timetable to emerge from chapter 11 by the end of October. John LaBahn, Senior Vice President and Chief Financial Officer said, "We continue to be very proud of what we have been able to accomplish as we work to emerge with a significantly improved capital structure. This will allow us to complete our restructuring and exit bankruptcy by the end of October." Pursuant to the confirmed plan of reorganization, holders of Portolaÿs existing senior unsecured notes will receive 100% of the common stock of reorganized Portola, and Wayzata will become Portolaÿs controlling shareholder upon Portolaÿs emergence from bankruptcy. Through the court-assisted restructuring process, Portola will have eliminated US$180 million in funded debt from its balance sheet. The plan of reorganization specifically provides that Portolaÿs relationships with customers and trade creditors are not impaired. Portola is pleased that it was able to restructure its balance sheet without any impact upon its relationships with its vendors and customers. Portola President and CEO Brian Bauerbach added, "Our improved balance sheet and reduced interest costs will enable us to better serve our customers and improve our competitive position in the packaging industry." Portola filed the second amended plan and accompanying disclosure statement on Oct. 10. Since the filing of the original prepack plan, Portola has filed plan supplements and amended exhibits to plan supplements. BankruptcyData says the amendments relate to the Debtors' second lien term loan with Wayzata Investment Partners, rejected executor contracts, unexpired leases and non-exclusive list of retained causes of action and Debtors' officers and directors. About Portola Packaging Portola Packaging Inc. -- http://www.portpack.com/-- designs, manufactures, and markets a full line of tamper-evident plastic closures, bottles, and equipment for the beverage and food industries, as well as plastic closures and containers for the cosmetics industry. The company and 6 of its debtor-affiliates filed for Chapter 11 reorganization on Aug. 27, 2008 (Bankr. D. Del. Lead Case No. 08-12001). Edmon L. Morton, Esq., Robert S. Brady, Esq., and Sean T. Greecher, Esq., at Young, Conaway, Stargatt & Taylor, represent the Debtors as counsel. When the Debtors filed for protection from their creditors, they listed assets of between US$50 million and US$100 million, and debts of between US$100 million and US$500 million. The company has locations in China, Mexico and Belgium. =========== C Y P R U S =========== RESERVE INVEST: Moody's Lowers Currency Issuer Rating to B3 ----------------------------------------------------------- Moody's Investors Service downgraded to B3 from B1 the long-term foreign currency issuer rating of Reserve Invest. The rating continues to be on review for possible downgrade. According to Moody's, the downgrade reflects the significant negative impact of the current market dislocation on RIC's liquidity profile, its profitability and franchise prospects. RIC's largest asset is a sizable stake in LUKoil ADRs, which the firm uses to attract funding in the repo market, primarily with Western counterparties. As a result of the significant dislocation in the credit markets in last several weeks, compounded by the high volatility in LUKoil shares, RIC is likely to face significant reduction in funding capacity. While it does have a modest free cash position as well as a significant amount of unencumbered LUKoil shares, RIC remains vulnerable to continued deterioration in its liquidity profile if counterparties decide to further limit their exposure to RIC, LUKoil, or both. Should conditions continue to worsen, RIC's only alternative source of liquidity would be a cash infusion from its principal shareholder, but Moody's does not consider this possibility of support, which albeit might be likely can not be assessed with a good degree of confidence. However, Moody's recognizes that the current shareholder support is significant. RIC could also sell LUKoil shares in the open market, but this would likely expose the firm to substantial losses. During the review period, Moody's will continue to monitor RIC's liquidity position and any actions taken by management and owners to strengthen its durability in what remains a very tenuous market environment. In September 2008, Moody's Investors Service placed a B1 long-term foreign currency issuer rating on review for a possible downgrade. RIC is a Cyprus-based financial company with total assets at end- September 2008 of US$2.0 billion and equity of US$1.1 billion. The company reported losses of about US$274 million during the nine month of 2008. =========================== C Z E C H R E P U B L I C =========================== KARLOVARSKY PORCELAN: Granted Creditor Protection in Prague ----------------------------------------------------------- Karlovy Vary-based china producer Karlovarsky porcelan and Svetlanad Sazavou-based glass maker Sklo Vohemia have been granted protection from creditors by the Prague Municipal Court Tuesday last week, CzechNews reports. The two companies, part of Czech glass manufacturer Bohemia Crystalex Trading, have been undergoing insolvency proceedings since Sept. 22 following a shortage of cash. The court appointed the Pro-Konkurs as the insolvency administrator for Karlovarsky porcelan, the report discloses. The report adds creditors have 40 days to submit their claims. According to the report, Karlovarsky porcelan's bank accounts have been frozen and the 1,540 employees have received only 70% percent of their wages. Karlovarsky Porcelan's Debts A TCR-Europe report on Sept. 29, 2008, citing CTK, said Karlovarsky porcelan is unable to pay its debts of more than CZK600 million, CZK56.7 million of which are more than three months overdue. The report disclosed KP owes around CZK194 million to suppliers, while its bank loans stood at about CZK415.4 million. KP, which employs around 1,800 staff, has total assets of around CZK795 million. In 2007, the company reduced its loss from the previous year by about CZK60 million to CZK82 million. Its revenues increased by 2.5% to about CZK948 million, the report noted. SKLO VOHEMIA: Granted Creditor Protection in Prague --------------------------------------------------- Karlovy Vary-based china producer Karlovarsky porcelan and Svetlanad Sazavou-based glass maker Sklo Vohemia have been granted protection from creditors by the Prague Municipal Court Tuesday last week, CzechNews reports. The two companies, part of Czech glass manufacturer Bohemia Crystalex Trading, have been undergoing insolvency proceedings since Sept. 22 following a shortage of cash. The court appointed the Pro-Konkurs as the insolvency administrator for Karlovarsky porcelan, the report discloses. The report adds creditors have 40 days to submit their claims. According to the report, Karlovarsky porcelan's bank accounts have been frozen and the 1,540 employees have received only 70% percent of their wages. Karlovarsky Porcelan's Debts Citing CTK, a TCR-Europe report on Sept. 29, 2008, said Karlovarsky porcelan is unable to pay its debts of more than CZK600 million, CZK56.7 million of which are more than three months overdue. The report disclosed KP owes around CZK194 million to suppliers, while its bank loans stood at about CZK415.4 million. KP, which employs around 1,800 staff, has total assets of around CZK795 million. In 2007, the company reduced its loss from the previous year by about CZK60 million to CZK82 million. Its revenues increased by 2.5% to about CZK948 million, the report noted. ============= D E N M A R K ============= * Danish Guarantee Scheme Helps Provide Liquidity, Moody's Says --------------------------------------------------------------- Moody's Investors Service said that the Danish guarantee scheme that has been put in place by the Danish government together with the Danish banking sector (Private Contingency Association) is helpful in terms of providing liquidity and in restoring confidence in the country's banking system. The Danish guarantee scheme covers deposits in excess of the existing Danish Guarantee Fund for Depositors and the claims of senior unsecured creditors. However, it does not cover creditors whose claims are based on subordinate loan capital, hybrid core capital or covered bonds. "All the Danish commercial banks rated by Moody's are members of the Private Contingency Association, and are therefore covered," says Eeva Antila, Analyst for Danish banks in Moody's Financial Institutions Group. The guarantee scheme is effective for a two-year period until September 30, 2010, implying that any default on deposits and senior unsecured creditors during that period is fully covered. Moody's understands the main components of the guarantee scheme, as stipulated under the Act on Financial Stability, to be as follows: -- The guarantee scheme shall unconditionally guarantee the claims of depositors and unsecured senior creditors. -- The Danish government will establish a company dedicated to facilitating the winding-up process in case of an insolvency of a participating bank. The winding-up company shall ensure continuing operations of such a bank. -- The participating banks will cover the first-loss position in the winding-up company up to DKK35 billion (EUR4.7 billion). This first-loss position consists of two annual guarantee commission payments of DKK7.5 billion (EUR1.0 billion) and a maximum unfunded liability under the guarantee of DKK20 billion (EUR2.7 billion). The contributions of the respective member banks are calculated based on their capital base. -- The Danish government will cover any loss in excess of DKK35 billion and, at the termination of the guarantee scheme, it will be entitled to the residual amount remaining in the winding-up company, if any. "Moody's notes that contributions related to the scheme will have a negative impact on the banks' profitability for the two-year period -- indeed, the annual guarantee commission payment of DKK7.5 billion represents almost 20% of the 2007 aggregate pre-tax profit of the Danish banking sector," explains Ms Antila. The participating banks are not allowed to distribute dividends during the guarantee period, except foreign parent companies and under certain conditions only. In addition, certain limitations on the banks' balance sheet growth have been put in place. The rating agency comments that the Danish guarantee scheme is in many respects different from the support mechanisms put in place elsewhere in Europe. In contrast to other schemes, the Danish banking sector covers the first loss. Furthermore, the scheme does not allow for capital support at this stage. It is only upon the insolvency of a participating bank that capital support can be made available to a bank acquiring such a distressed bank. Impact on Ratings "Moody's views the guarantee as being helpful from a liquidity point of view as it should improve the ability of Danish banks to raise funding in the capital markets at a time when there is a lack of market confidence," says Ms. Antila. However, given the two-year term of the guarantee, it is unlikely to have positive implications for the long-term ratings of the Moody's-rated Danish banks. These ratings already incorporate an uplift from the banks' respective bank financial strength ratings (BFSRs), reflecting the potential for systemic support. Regarding the short-term ratings, Moody's will analyze the terms of the guarantee to determine whether short-term ratings would be positively impacted. While the guarantee scheme mitigates liquidity challenges in the current difficult market environment, Moody's notes that rating actions (positive or negative) will continue to be influenced by underlying credit and franchise fundamentals, in line with Moody's established bank rating methodology. Moreover, any rating actions that Moody's may undertake would anticipate franchise strength following the termination of this support program. Moody's Perspective On October 8, 2008, Moody's released a Special Comment on its approach towards incorporating government support for banking systems into its ratings titled "Assessing the Rating Implications for Banks of the Current Market Turmoil and Governmental Interventions to Support Their Banking Systems" and on October 14, 2008, Moody's released another Special Comment on the coordinated European response to the crisis titled "Actions by European Sovereigns provide substantial de-risking for large European banks". The Moody's-rated Danish banks that are covered by the guarantee scheme are as follows: -- Amagerbanken A/S -- rated A1/P-1/C (Negative outlook) -- Danske Bank A/S -- rated Aa1/P-1/B (Stable outlook) -- FIH Erhvervsbank A/S -- rated A2/P-1/C (Ratings under review for possible downgrade) -- Fionia Bank A/S -- rated A1/P-1/C (Negative outlook) -- Foroya Banki P/F -- rated A3/P-2/C- (Stable outlook) -- Jyske Bank A/S -- rated Aa2/P-1/B- (Stable outlook) -- Nordea Bank Danmark A/S -- rated Aa1/P-1/B- (Stable outlook) -- Nykredit Bank A/S -- rated Aa3/P-1/C+ (Stable outlook) -- Ringkjobing Landbobank A/S -- A1/P-1/C+ (Stable outlook) -- Spar Nord Bank A/S -- rated A1/P-1/C (Stable outlook) -- Sydbank A/S -- rated Aa3/P-1/C+ (Stable outlook) =========== F R A N C E =========== ATARI INC: Seeks to Deregister Unsold Shares Following Merger ------------------------------------------------------------- Atari Inc. has filed post-effective amendments to remove from registration any securities of the company that remain unsold at the termination of the offering subject to the registration statements. The company seeks to remove from registration: -- the Form S-8 Registration Statement (Registration No. 333-33353) pertaining to the registration of 4,000,000 shares of its common stock, par value US$0.01 per share, originally issuable pursuant to the GT Interactive Software Corp. 1997 Stock Incentive Plan was originally filed with the Securities and Exchange Commission on Aug. 11, 1997; -- the Form S-8 Registration Statement (Registration No. 333-39353) pertaining to the registration of 741,727 shares of the Company's common stock, par value US$0.01 per share, originally issuable pursuant to the The Singletrac Entertainment Technologies, Inc. 1996 Equity Incentive Plan and the Singletrac 1997/98 Employee Bonus Plan was originally filed with the Securities and Exchange Commission on Nov. 3, 1997; -- the Form S-8 Registration Statement (Registration No. 333-61197) pertaining to the registration of 4,000,000 shares of the Company's common stock, par value US$0.01 per share, originally issuable pursuant to the GT Interactive Software Corp. 1997 Stock Incentive Plan was originally filed with the Securities and Exchange Commission on Aug. 11, 1998; -- The Form S-8 Registration Statement (Registration No. 333-62271) pertaining to the registration of 1,000,000 shares of the Company's common stock, par value US$0.01 per share, originally issuable pursuant to the GT Interactive Software Corp. 1998 Employee Stock Purchase Plan was originally filed with the Securities and Exchange Commission on Aug. 26, 1998; -- the Form S-8 Registration Statement (Registration No. 333-54878) pertaining to the registration of 13,308,345 shares of the Company's common stock, par value US$0.01 per share, originally issuable pursuant to the Infogrames, Inc. 2000 Stock Incentive Plan was originally filed with the Securities and Exchange Commission on Feb. 2, 2001; and -- the Form S-8 Registration Statement (Registration No. 333-88804) pertaining to the registration of 568,328 shares of the Company's common stock, par value US$0.01 per share, originally issuable pursuant to the Infogrames, Inc. 2000 Stock Incentive Plan was originally filed with the Securities and Exchange Commission on May 22, 2002. On Oct. 8, 2008, Infogrames Entertainment, S.A. completed its acquisition of the company. In connection with the Merger, the company's shares of common stock, par value US$0.10 per share, are no longer traded on the "Pink Sheets" or listed on any exchange or quotation service. On Oct. 8, 2008, pursuant to the terms of the Agreement and Plan of Merger among Infogrames, Irata Acquisition Corp. and the company, each outstanding share of Atari common stock, par value US$0.10 per share, other than shares held by Infogrames and its subsidiaries and shares held by Atari stockholders who are entitled to and who properly exercise appraisal rights under Delaware law, issued and outstanding immediately prior to the effective time of the Merger was canceled and automatically converted into the right to receive US$1.68 per share in cash, without interest. Upon the closing of the Merger, the company became a wholly owned indirect subsidiary of Infogrames. As a result of the merger, the company has terminated all offerings of the Company's securities pursuant to certain existing registration statements. About Atari Inc. New York City-based Atari Inc. is a publisher of video game software that is distributed throughout the world and a distributor of video game software in North America. Most of the products it publishes and distributes are games developed by or for Infogrames Entertainment S.A., or IESA, a French corporation listed on Euronext, which owns approximately 51% of its stock. Atari has offices in Brazil, the United Kingdom and Japan. Going Concern Doubt As reported in the Troubled Company Reporter on July 16, 2008, J.H. Cohn LLP raised substantial doubt about Atari Inc.'s ability to continue as a going concern after it audited the company's financial statements for the year ended March 31, 2008. The auditor pointed to the company's significant operating losses. HERITAGE WORLD: 2008 Balance Sheet Upside Down ---------------------------------------------- New York-based Sherb & Co., LLP, raised substantial doubt about the ability of Heritage Worldwide, Inc., to continue as a going concern after it audited the company's financial statements for the year ended June 30, 2008. The auditor pointed to the company's significant losses and working capital deficit. The company posted a net loss of US$5.07 million on total revenues of US$17.40 million for the year ended June 30, 2008, as compared with a net loss of US$2.17 million on total revenues of US$15.42 million in the prior year. At June 30, 2008, the company's cash amounted to US$0.28 million and its working deficit amounted to US$3.38 million. Management Statement The company had a net loss during fiscal 2008. Furthermore, the company have two convertible promissory notes amounting to US$4.00 million maturing within one year. One of the note holders has indicated that they are not going to convert their promissory note of US$3.00 million into shares of the company's stock. Such promissory note matures in March 2009. These conditions raise substantial doubt about its ability to continue as a going concern. In October 2008, the company expects to issue 750,000 shares of common stock to satisfy its obligations under convertible debentures amounting to US$1.00 million. As a result, the company's current operations are not an adequate source of cash to fund future operations. The company's ability to continue as a going concern is dependent upon its ability to obtain the necessary financing to meet its obligations and repay its liabilities when they become due and to generate profitable operations in the future. The company plans to continue to increase its revenues and provide for its capital requirements through lines of credit, however, there are no firm commitments from any third party to provide such revenues or financing and the company cannot assure that it will be successful in obtaining such commitments as needed. Additionally, the company intend to negotiate with certain creditors to extend the payment terms and/or reduce the amount of its obligations to them. There are no assurances that the company will have sufficient funds to execute its business plan, pay its obligations as they become due or generate positive operating results. Liquidity and Capital Resources During fiscal 2008, the company provided US$0.31 million in cash flows from operating activities. The company's cash provided by operating activities was comprised of a net loss amounting to US$5.00 million adjusted for: -- debt discount of US$0.44 million; -- depreciation and amortization of US$0.78 million; -- fair value of options of US$0.09 million; -- increased provision for doubtful accounts of US$0.70 million; and -- increased provision for returns of US$0.11 million. Additionally, the following variations in operating assets and liabilities impacted the company's cash used in operating activity: -- Decrease in accounts receivable of US$1.65 million due to larger collection efforts implemented in the second quarter of fiscal 2008; and -- Increase in inventory of US$0.21 million to meet the anticipated increase in demand of the company's products; -- Increase in prepaid assets and other current assets of US$0.31 million resulting from increased research tax credit receivable; -- Increase in accounts payable and accrued expenses of US$2.13 million due to higher provisions resulting from adverse adjustments from U.K. litigations. During fiscal 2008, the company purchased property and equipment in the amount of US$0.38 million. During fiscal 2008, the company financed its operations, investing activities and the principal repayment of long-term debt of US$0.23 million and capitalized lease obligations of US$0.29 million by securing financing of around US$0.74 million in long-term debt and by increasing the use of its lines of credit by US$0.11 million. Balance Sheet At June 30, 2008, the company's balance sheet showed US$17.19 million in total assets and US$17.46 in total liabilities, resulting in a US$0.83 million stockholders' deficit. The company's consolidated balance sheet at June 30, 2008, also showed strained liquidity with US$12.78 million in total current assets available to pay US$16.16 in total current liabilities. A full-text copy of the company's 2008 annual report is available for free at http://ResearchArchives.com/t/s?33db About Heritage Worldwide Heritage Worldwide, Inc. (OTC BB: HWWI) manufactures and distributes cosmetic implants including pre-filled breast and other body implants, as well as body support products. HWWI was incorporated in the State of Delaware in 2001 with headquarters and a production facility in the Toulon metropolitan area of southern France, and a distribution facility in Spain. HWWI products are sold directly and indirectly through independent distributors and sales representatives to surgeons and clinics outside the United States. More than 68% of sales are derived from international operations outside France, where main operations are conducted. ============= G E R M A N Y ============= ALCION GMBH: Claims Registration Period Ends October 28 ------------------------------------------------------- Creditors of ALCION GmbH have until Oct. 28, 2008, to register their claims with court-appointed insolvency manager Christopher Seagon. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Dec. 9, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Karlsruhe Hall IV First Floor Schlossplatz 23 76131 Karlsruhe Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Christopher Seagon Blumenstr. 17 69115 Heidelberg Germany Tel: (06 22 1) 91 18 0 The District Court of Karlsruhe opened bankruptcy proceedings against ALCION GmbH on Sept. 11, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: ALCION GmbH Attn: Reinhard Welker, Manager Haid-und-Neu-Str. 7 76131 Karlsruhe Germany ARES GMBH: Claims Registration Period Ends October 28 ----------------------------------------------------- Creditors of ARES GmbH have until Oct. 28, 2008, to register their claims with court-appointed insolvency manager Ruediger Bauch. Creditors and other interested parties are encouraged to attend the meeting at 9:50 a.m. on Nov. 25, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Halle (Saal) Hall 1.044 Judicial Center Thueringer Str. 16 06112 Halle Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Ruediger Bauch Sternstrasse 13 D 06108 Halle Germany Tel: 0345/5200111 Fax: 0345/5200066 The District Court of Halle (Saal) opened bankruptcy proceedings against ARES GmbH on Sept. 9, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: ARES GmbH Delitzscher Strasse 9 06112 Halle Germany Attn: Bodo Sommer, Manager Rosenstrasse 25 06237 Leuna Germany BEIERSDORFER LANDSCHAFTS: Claims Registration Ends October 28 ------------------------------------------------------------- Creditors of Beiersdorfer Landschafts- und Sportplatzbau GmbH have until Oct. 28, 2008, to register their claims with court-appointed insolvency manager Albert Wolff. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Dec. 9, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Dresden Hall D131 Olbrichtplatz 1 01099 Dresden Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Albert Wolff Am Schiesshaus 1-3 01067 Dresden Germany Web site: http://www.worako.de The District Court of Dresden opened bankruptcy proceedings against Beiersdorfer Landschafts- und Sportplatzbau GmbH on Sept. 23, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Beiersdorfer Landschafts- und Sportplatzbau GmbH Streitfelder Strasse 2 a 02708 Lawalde Germany Attn: Jens Hauptmann, Manager geboren 1965 Am Sandberg 2 02681 Kirschau Germany BURGER HOCH: Claims Registration Period Ends October 28 ------------------------------------------------------- Creditors of Burger Hoch- und Geruestbau GmbH have until Oct. 28, 2008, to register their claims with court-appointed insolvency manager Dr. Lucas F. Floether. Creditors and other interested parties are encouraged to attend the meeting at 2:00 p.m. on Nov. 18, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Stendal Hall 112 Albrecht der Bar Scharnhorststrasse 40 39576 Stendal Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Lucas F. Floether Halberstadter Strasse 55 39112 Magdeburg Germany Tel: 0391/5 55 68 40 Fax: 0391/5 55 68 49 The District Court of Stendal opened bankruptcy proceedings against Burger Hoch- und Geruestbau GmbH on Sept. 23, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Burger Hoch- und Geruestbau GmbH Attn: Gerald Bethge, Manager Kanalstrasse 14 39288 Burg Germany CHIQUITA BRANDS: S&P Ratings Unmoved by Finding Firm Joined Cartel ------------------------------------------------------------------ Standard & Poor's Ratings Services said that its ratings and outlook on Dole Food Co. Inc. (B-/Negative/--), Fresh Del Monte Produce Inc. (BB-/Positive/--), and Chiquita Brands International Inc. (B-/Stable/--) remain unchanged following the European Commission's announcement that it has found that Chiquita, Dole, and Internationale Fruchtimport Gesellschaft Weichert & Co KG, participated in a cartel in Northern Europe between 2000 and 2002. However, based on Chiquita's prior voluntary notification and cooperation with the investigation, the EC granted the company immunity from any fines related to the conduct, subject to customary conditions. The EC has imposed a fine of EUR45.6 million (about US$62 million) on Dole and its German subsidiary, Dole Fresh Fruit Europe OHG. Dole intends to appeal the EC decision and fine, so it is unclear when, if any, payment will be made. Although Dole must still address a May 2009 maturity of US$350 million, S&P believes near- term liquidity would be sufficient even if the company is not successful in its appeal. At June 14, 2008, Dole had US$166 million available under its US$350 million asset-based revolving credit facility, and about US$77 million of cash. In addition, Dole continues to pursue its asset sale program, including its September 2008 announcement that it signed a binding letter of intent to sell its flowers division, and signed a definitive purchase and sale agreement to sell two ripening and distribution companies in Europe. Dole expects these pending divestitures, along with the sale of additional agricultural land, will result in net proceeds of about US$145 million. The EC also imposed a EUR14.7 million (about US$20 million) fine on Weichert, a company in which Fresh Del Monte indirectly held a noncontrolling financial interest until December 2002. Although Weichert has been a subsidiary of Fyffes plc since January 2003, the EC holds Fresh Del Monte jointly and severally liable for Weichert's conduct as a result of this financial interest. Upon receipt of the EC's full decision, Fresh Del Monte will consider its options, including an action for annulment in the European Court of First Instance. However, if Fresh Del Monte is not successful in some type of reversal of this fine, S&P believes liquidity would be sufficient and credit measures would not be materially impacted by payment of this fine. As of June 30, 2008, Fresh Del Monte had cash of about US$34 million and US$277 million available under its US$600 million revolving credit facility. DOLE FOOD: S&P Ratings Unmoved by EU Finding Firm Joined Cartel --------------------------------------------------------------- Standard & Poor's Ratings Services said that its ratings and outlook on Dole Food Co. Inc. (B-/Negative/--), Fresh Del Monte Produce Inc. (BB-/Positive/--), and Chiquita Brands International Inc. (B-/Stable/--) remain unchanged following the European Commission's announcement that it has found that Chiquita, Dole, and Internationale Fruchtimport Gesellschaft Weichert & Co KG, participated in a cartel in Northern Europe between 2000 and 2002. However, based on Chiquita's prior voluntary notification and cooperation with the investigation, the EC granted the company immunity from any fines related to the conduct, subject to customary conditions. The EC has imposed a fine of EUR45.6 million (about US$62 million) on Dole and its German subsidiary, Dole Fresh Fruit Europe OHG. Dole intends to appeal the EC decision and fine, so it is unclear when, if any, payment will be made. Although Dole must still address a May 2009 maturity of US$350 million, S&P believes near- term liquidity would be sufficient even if the company is not successful in its appeal. At June 14, 2008, Dole had US$166 million available under its US$350 million asset-based revolving credit facility, and about US$77 million of cash. In addition, Dole continues to pursue its asset sale program, including its September 2008 announcement that it signed a binding letter of intent to sell its flowers division, and signed a definitive purchase and sale agreement to sell two ripening and distribution companies in Europe. Dole expects these pending divestitures, along with the sale of additional agricultural land, will result in net proceeds of about US$145 million. The EC also imposed a EUR14.7 million (about US$20 million) fine on Weichert, a company in which Fresh Del Monte indirectly held a noncontrolling financial interest until December 2002. Although Weichert has been a subsidiary of Fyffes plc since January 2003, the EC holds Fresh Del Monte jointly and severally liable for Weichert's conduct as a result of this financial interest. Upon receipt of the EC's full decision, Fresh Del Monte will consider its options, including an action for annulment in the European Court of First Instance. However, if Fresh Del Monte is not successful in some type of reversal of this fine, S&P believes liquidity would be sufficient and credit measures would not be materially impacted by payment of this fine. As of June 30, 2008, Fresh Del Monte had cash of about US$34 million and US$277 million available under its US$600 million revolving credit facility. FRESH DEL MONTE: S&P Ratings Unmoved by Finding Firm Joined Cartel ------------------------------------------------------------------ Standard & Poor's Ratings Services said that its ratings and outlook on Dole Food Co. Inc. (B-/Negative/--), Fresh Del Monte Produce Inc. (BB-/Positive/--), and Chiquita Brands International Inc. (B-/Stable/--) remain unchanged following the European Commission's announcement that it has found that Chiquita, Dole, and Internationale Fruchtimport Gesellschaft Weichert & Co KG, participated in a cartel in Northern Europe between 2000 and 2002. However, based on Chiquita's prior voluntary notification and cooperation with the investigation, the EC granted the company immunity from any fines related to the conduct, subject to customary conditions. The EC has imposed a fine of EUR45.6 million (about US$62 million) on Dole and its German subsidiary, Dole Fresh Fruit Europe OHG. Dole intends to appeal the EC decision and fine, so it is unclear when, if any, payment will be made. Although Dole must still address a May 2009 maturity of US$350 million, S&P believes near- term liquidity would be sufficient even if the company is not successful in its appeal. At June 14, 2008, Dole had US$166 million available under its US$350 million asset-based revolving credit facility, and about US$77 million of cash. In addition, Dole continues to pursue its asset sale program, including its September 2008 announcement that it signed a binding letter of intent to sell its flowers division, and signed a definitive purchase and sale agreement to sell two ripening and distribution companies in Europe. Dole expects these pending divestitures, along with the sale of additional agricultural land, will result in net proceeds of about US$145 million. The EC also imposed a EUR14.7 million (about US$20 million) fine on Weichert, a company in which Fresh Del Monte indirectly held a noncontrolling financial interest until December 2002. Although Weichert has been a subsidiary of Fyffes plc since January 2003, the EC holds Fresh Del Monte jointly and severally liable for Weichert's conduct as a result of this financial interest. Upon receipt of the EC's full decision, Fresh Del Monte will consider its options, including an action for annulment in the European Court of First Instance. However, if Fresh Del Monte is not successful in some type of reversal of this fine, S&P believes liquidity would be sufficient and credit measures would not be materially impacted by payment of this fine. As of June 30, 2008, Fresh Del Monte had cash of about US$34 million and US$277 million available under its US$600 million revolving credit facility. GIAB MBH: Claims Registration Period Ends October 24 ---------------------------------------------------- Creditors of Giab mbH have until Oct. 24, 2008, to register their claims with court-appointed insolvency manager Dr. Martin Moderegger. Creditors and other interested parties are encouraged to attend the meeting at 2:00 p.m. on Nov. 24, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Erfurt Hall 15 Judicial Center Rudolfstr. 46 99092 Erfurt Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Martin Moderegger Am Drosselberg 45 99097 Erfurt Germany The District Court of Erfurt opened bankruptcy proceedings against Giab mbH on Sept. 22, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Giab mbH Clara-Zetkin-Strasse 40 99099 Erfurt Germany GREENHOUSE GMBH: Claims Registration Period Ends October 24 ----------------------------------------------------------- Creditors of Greenhouse GmbH have until Oct. 24, 2008, to register their claims with court-appointed insolvency manager Dr. Jochen Zaremba. Creditors and other interested parties are encouraged to attend the meeting at 9:10 a.m. on Nov. 10, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Amberg Room 115 Meeting Hall V First Stock Baustadelgasse 1 Amberg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Jochen Zaremba Waisenhausgasse 3-4 92224 Amberg Germany Tel: 09621/91 100 Fax: 09621/91 10 22 The District Court of Amberg opened bankruptcy proceedings against Greenhouse GmbH on Sept. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Greenhouse GmbH Rosenthalstrasse 12 92224 Amberg Germany HUMBOLDT PROJEKT: Claims Registration Period Ends October 24 ------------------------------------------------------------ Creditors of Humboldt Projekt GmbH have until Oct. 24, 2008, to register their claims with court-appointed insolvency manager Herbert Duerkop. Creditors and other interested parties are encouraged to attend the meeting at 9:20 a.m. on Nov. 19, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hamburg Hall B 405 Fourth Floor Annex Civil Justice Bldg. Sievkingplatz 1 20355 Hamburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Herbert Duerkop Neuer Wall 86 20354 Hamburg Germany The District Court of Hamburg opened bankruptcy proceedings against Humboldt Projekt GmbH on Sept. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Humboldt Projekt GmbH Beim Gruenen Jager 21 22359 Hamburg Germany KHANS GASTRO: Claims Registration Period Ends October 24 -------------------------------------------------------- Creditors of Khans Gastro GmbH have until Oct. 24, 2008, to register their claims with court-appointed insolvency manager Dr. Ekkehard Padeck. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on Nov. 24, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hagen Hall 259 Second Floor Heinitzstrasse 42/44 58097 Hagen Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Ekkehard Padeck Friedrich-Ebert-Platz 2 58095 Hagen Germany The District Court of Hagen opened bankruptcy proceedings against Khans Gastro GmbH on Sept. 23, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Khans Gastro GmbH Heinitzstr. 45 58097 Hagen Germany LEAR CORPORATION: Moody's Holds 'B2' Corp. Family Rating -------------------------------------------------------- Moody's Investors Service affirmed the B2 corporate family and probability of default ratings of Lear Corporation, but lowered the company's Speculative Grade Liquidity Rating to SGL-3 from SGL-2. In a related action, Lear's outlook was changed to negative. The rating action is based on the company's recent announcement that it has further lowered its 2008 earnings guidance as a result of deteriorating and volatile industry and general economic conditions. Lear reduced its full-year 2008 sales outlook from US$15 billion to approximately US$14 billion and now sees its core operating earnings down approximately 20% from its previous guidance of US$550 million to US$600 million issued on July 29, 2008. While Lear continues to anticipate free cash flow to be positive, Moody's believes it will be meaningfully lower than the US$150 million expectation in the company's previous guidance. Moody's expects the weakening automotive production environment to adversely impact Lear's operating metrics and could constrain the magnitude of cushion under the financial covenants in the company's bank credit facility over the next twelve months. The negative outlook considers that while the company currently maintains good credit metrics for the assigned rating, these metrics will likely moderate due to the severe erosion in industry fundamentals over the near-term. Lear's revised guidance reflects declining North American vehicle sales and production, the shift in product mix to smaller passenger vehicles in the U.S., and the lower automotive OEM production in Europe. The outlook also considers that while Lear has successfully implemented restructuring programs in the past, the current industry environment continues to evolve, posing additional execution risk. Developments that could lead to a stabilized outlook include stabilization of industry conditions, OEM market shares in North America, and restructuring actions at Lear, resulting in margins which would result in debt/EBITDA sustained below 4.5 times, or EBIT/Interest coverage sustained at 2 times. Developments that could lead to lower ratings include recurring negative free cash flow, deterioration in margins leading to debt/EBITDA sustained above 6 times, or EBIT/Interest coverage sustained below 1.3 times. Lear's Speculative Grade Liquidity rating of SGL-3 indicates adequate liquidity over the next twelve months. At June 30, 2008, Lear's principal liquidity sources included cash balances of approximately US$624 million, with about one-third of this is located domestically, and about another one-third is available internationally. Moody's expects Lear's ability to generate positive free cash flow over the next twelve months to be challenged by the current industry environment. The company's liquidity profile includes a Euro 315 million factoring facility which expires in April 2011 and a US$1.29 billion revolving credit facility. Approximately US$822 million of the revolving credit facility matures in January 2012; while approximately US$468 million is due in March 2010. These facilities were undrawn at June 30, 2008 with US$61 million of letters of credit outstanding. Lear currently has ample room under the credit facility's covenants with leverage and interest ratios of 2.1 times and 4.8 times compared to the covenant thresholds of 3.5 times and 2.75 times, respectively. However, the combination of current industry OEM production pressures, which are expected to continue into 2009, and the tightening of these covenants over the near-term are expected to reduce the company's current covenant cushions. The bank debt is secured by the capital stock of all the company's domestic subsidiaries and a portion of the first tier foreign subsidiaries, and certain domestic assets subject to the 10% lien limitation within the company's bond indentures, above these levels collateral must be shared with the bonds. Alternate liquidity is further limited by the terms of the bank debt. Ratings Lowered: -- Speculative Grade Liquidity Rating, to SGL-3 from SGL-2 Ratings Affirmed: -- Corporate Family Rating, B2 -- Probability of Default, B2 -- Senior Secured Term Loan, B1 (LGD3, 42%) -- Senior Unsecured Notes, B3 (LGD4, 58%) Lear Corporation, headquartered in Southfield, Michigan, is focused on providing complete seat systems, electrical distribution systems and various electronic products to major automotive manufacturers across the world. The company had revenue of US$16.0 billion in 2007 and employed approximately 91,000 employees in 34 countries. Following the disposition of its interior business, Lear expects its ongoing revenues to approximate US$14.0 billion. VYSUAL GMBH: Creditors Meeting Slated for October 28 ---------------------------------------------------- The court-appointed insolvency manager for VYSUAL GmbH, Stefan Schacht, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 9:00 a.m. on Oct. 28, 2008. The meeting of creditors and other interested parties will be held at: The District Court of Charlottenburg Second Stock Hall 218 Amtsgerichtsplatz 1 14057 Berlin Germany The Court will also verify the claims set out in the insolvency manager's report at 9:35 a.m. on Feb. 17, 2008, at the same venue. Creditors have until Dec. 18, 2008, to register their claims with the court-appointed insolvency manager. The insolvency manager can be reached at: Stefan Schacht Oranienburger Str. 4-5 10178 Berlin Germany The District Court of Charlottenburg opened bankruptcy proceedings against VYSUAL GmbH on Sept. 26, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: VYSUAL GmbH Moeckernstr. 68 10965 Berlin Germany * GERMANY: Landesbank Poised to Use Billions of State Rescue Funds ------------------------------------------------------------------ The Wall Street Journal, citing interviews published on the Web sites of two German newspapers, reports that Bavarian Finance Minister Erwin Huber signaled Bayerische Landesbank aka BayernLB was leaning toward requesting "billions" of euros in government help in the coming days. The global financial crisis has "heavily affected" BayernLB, Sueddeutsche Zeitung quoted Mr. Huber, who is also the bank's nonexecutive chairman, as saying. A request for help by BayernLB, which has about EUR400 billion in assets, wouldn't represent a surprise, the Journal writes. The bank has written down more than EUR4 billion on the value of investments since last year, and a spokesman confirmed last week that it needed capital. It also has said it is exploring a possible merger with another bank or bringing a private investor aboard. Mr. Huber's reported comments Sunday in Sueddeutsche Zeitung and Bild represent the most concrete indication yet of a bank preparing to draw from the German government's EUR500 billion bank rescue fund, the Journal notes. The bailout package was approved Friday by German lawmakers in a bid to restore confidence in the country's financial sector. The fund, the Journal relates, includes EUR400 billion in bank guarantees, EUR80 billion in fresh capital and EUR20 billion in loss provisions. Banks that draw from government funds will have to make concessions, including possible curbs on executive pay. Final details were expected to be hammered out during a meeting of Chancellor Angela Merkel's cabinet today, October 20. A BayernLB spokesman declined Sunday to comment on whether it was planning to tap the bailout fund, according to the Journal. Attempts to reach Mr. Huber and his aides were unsuccessful. A spokesman for Germany's finance ministry said the government had not yet received any formal requests for funding under the new rescue package. Meanwhile, the Journal relates that Deutsche Bank AG, Germany's largest bank by assets, said over the weekend it didn't plan to tap the government for financial assistance but other banks have said they will study the package. Executives from the country's state-owned regional lenders, or Landesbanken, were planning to meet Monday to craft a common response, according to a person familiar with the matter. * * * As reported by the Troubled Company Reporter-Europe on Oct. 16, 2008, Moody's Investors Service commented Tuesday, October 14, on the German government's announcement of a EUR480 billion support package for the German banking sector, including key parameters for specific measures to bolster the banking system. Moody's views government's proposals as positive in the current environment and confirms that it does not anticipate wholesale rating changes in the sector. Banking System Outlook - Negative Moody's says that the overall outlook for the German Banking System remains negative, reflecting the rating agency's expectations for the fundamental credit conditions in the German banking system over the next 12 to 18 months (please refer to the Banking System Outlook published in April 2008). Even though Germany still enjoys macro economic parameters superior to those of other EU nations -- in particular low household indebtedness and comparatively stable residential and commercial real estate markets -- the overall economic situation shows strong signs of a slow-down. As this will likely adversely affect German's export- driven economy, Moody's expects that banks will suffer from lower revenue growth as well as higher risk charges over the next few years. Moody's notes, however, that the high senior unsecured ratings it assigns to most German banks remain underscored by multiple support layers, which -- apart from the proven systemic support -- include strong mutual- or co-operative support and regional- or local government support for many banks. All these mechanisms continue to bolster the stability of the German banking system in times of market distress. ============= I C E L A N D ============= * ICELAND: Multi-Billion Euro Loan Plea from Russia Under Review ---------------------------------------------------------------- Reuters says that Russia is currently studying Iceland's multi- billion euro loan request. Talks in Moscow ended with Russia agreeing to consider the request for a loan which the North Atlantic island initially put at EUR4 billion (US$5.45 billion). No date was set for a new round of discussions, Reuters reports. In a previous report, Reuters said that Icelandic officials were in Moscow last Tuesday, October 14, for talks on an emergency loan that could be worth billions of euros, the country's latest attempt to raise cash to help save its economy from collapse. Iceland, according to the report, has tapped the International Monetary Fund for financing to help ease the crisis. Some ministers have raised the possibility of membership of the European Union, long resisted by its fishing sector, to safeguard the economy. "We are working thoroughly on the issue to take a final decision," Reuters quotes Russian Deputy Finance Minister Dmitry Pankin as saying. Russian officials, according to Reuters, said they are looking on the loan request favorably. As reported by the Troubled Company Reporter-Europe on Oct. 14, 2008, over the past two weeks, economic developments took a sharp turn for the worse in Iceland. The country's three main commercial banks, Glitnir, Landsbanki and Kaupthing, collapsed owing to the financial storm now raging in international markets and the government has resorted to exceptional measures to stabilize the situation. The Icelandic population, the TCR continued, has been seriously affected. Unemployment is expected to rise significantly. Inflation is already in double digits and will continue to rise in the short term. Icelandic pension funds have lost millions of dollars following the collapse of the three commercial banks. Thousands of Icelanders have lost a considerable part of their life-savings. The TCR added that the three banks were taken over by the Icelandic Financial Supervisory Authority under the provisions of the Act on the Depositors' and Investors' Guarantee Fund on Oct. 6, 2008. The purpose of the Act was to maintain an orderly operation of the banking system and to strengthen the position of depositors by giving them priority when allocating assets. Meanwhile, Signs on San Diego relates that Iceland's stock exchange plummeted more than 70% on October 14, when it resumed trading after a 3-day break, though the index later recouped almost all those losses. Officials said the plunge was a statistical anomaly caused by the ongoing suspension in trading of financial firms. Nasdaq OMX Iceland, according to Signs on San Diego, had halted equities trading for three days in a bid to prevent large declines on the exchange after a turbulent week in the Nordic island nation, where the government has taken control of the country's three major banks. ============= I R E L A N D ============= TOYMASTER: Goes Into Voluntary Liquidation ------------------------------------------ Toymaster has gone into voluntary liquidation. Mr. Tom Clifford, the owner, blames economic slowdown and intense competition for its closure, wexfordpeople.ie reports. Mr. Clifford said,"Basically, over the past 12 or 18 months, business went on a downward spiral. Summer trade was down 50 per cent...” adding that “It was more to do with the economic times and increased competition." According to the report, most of the debts accrued by the company are owed to toy companies and remaining stock will be sold by the liquidator to offset the deficit. The report relates customers who had paid deposits on Christmas toy orders have been contacted and had their money refunded. Toymaster is a Wexford toy store. =================== K A Z A K H S T A N =================== BTA BANK: US Dept. of Agriculture Provides US$120 Million Loan -------------------------------------------------------------- The United States Department of Agriculture has increased its direct loan facility extended to Kazakhstan-based BTA Bank JSC to US$120 million from US$55 million. The borrowed funds will be directed to finance supplies of U.S. agricultural products to Kazakhstan within GSM-102 program. BTA Bank has been vigorously applying these funds for its clients who import U.S. goods specified in the program, while issuing 3- year loans to importers. These guarantees allow for a considerable cut in loan costs due to beneficial refinancing of BTA Bank’s liabilities by U.S. banks. This borrowing is a vital injection at this time when the cost of financing has risen not only for Kazakhstan's banks but also for Western financial institutions. The involvement in this program conforms fully to BTA strategy, where support to SMEs is a notable line of activities. This more than a 2-fold increase of BTA credit facility amid the global financial turmoil evidences a sound image of the Bank as a borrower both among investors and Western state-owned institutions. GSM-102 GSM-102 is the Export Credit Guarantee Program of USDA's Commodity Credit Corporation designed to bolster food and agricultural exports to Kazakhstan and other Eurasian countries. GSM-102 underwrites credit extended by the private banking sector in the United States to approved foreign banks. JSC BTA Bank is a major banking institution in the CIS and the region's expansion leader. About BTA Bank Headquartered in Almaty, Kazakhstan, JSC BTA Bank -- http://bta.kz/en -- is among the biggest banks and leader in creation of banking network in CIS. BTA operating in the CIS and far-abroad countries is expanding into the CIS countries. Activities of its strategic bank partners cover Ukraine, 4 regions in Russia, Belarus, Georgia, Armenia, Kyrgyzstan and Turkey. BTA runs its representative offices in Russia, Ukraine, China and the United Arab Emirates. In Kazakhstan, BTA's network consists of 22 branches and 256 cash settlement units. * * * Bank TuranAlem carries a BB+ long-term foreign currency IDR from Fitch with a stable outlook. The company also carries Ba1 foreign currency subordinate debt ratings, Ba2 foreign currency junior subordinate debt rating and a D- bank financial strength rating from Moody's Investors Service. HB TEKNIK: Creditors Must File Claims by November 28 ---------------------------------------------------- LLP HB Teknik Technoproject Kazakhstan has declared liquidation. Creditors have until Nov. 28, 2008, to submit written proofs of claims to: LLP HB Teknik Technoproject Kazakhstan Office 207 Dostyk ave. 105 Almaty Kazakhstan IRBIS-LTD LLP: Claims Deadline Slated for November 26 ----------------------------------------------------- The Specialized Inter-Regional Economic Court of East Kazakhstan has declared LLP Irbis-Ltd. insolvent. Creditors have until Nov. 26, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of East Kazakhstan Frunze Str. 52-52 Zyryanovsk East Kazakhstan Kazakhstan Tel: 8 (7233) 56-03-83 8 (7233) 54-01-07 IRKAZ LLP: Claims Filing Period Ends November 28 ------------------------------------------------ The Specialized Inter-Regional Economic Court of South Kazakhstan has declared LLP IRKAZ insolvent. Creditors have until Nov. 28, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of South Kazakhstan Ilyaev Str. 24 Shymkent South Kazakhstan Kazakhstan Tel: 8 (7252) 53-48-34 8 (7252) 54-02-36 MEREY-STROY-EK LLP: Creditors' Claims Due on November 28 -------------------------------------------------------- LLP Construction Company Merey-Stroy-Ek has declared liquidation. Creditors have until Nov. 28, 2008, to submit written proofs of claims to: LLP Construction Company Merey-Stroy-Ek Geologicheskaya Str. 207 Ekibastuz 141200, Pavlodar Kazakhstan PLUS ENGENEERING: Claims Registration Ends November 28 ------------------------------------------------------ LLP Plus Engeneering has declared liquidation. Creditors have until Nov. 28, 2008, to submit written proofs of claims to: LLP Plus Engeneering Panfilov Str. 83-48 Almaty Kazakhstan PROM TECH INDUSTRIYA: Creditors Must File Claims by November 28 --------------------------------------------------------------- The Specialized Inter-Regional Economic Court of South Kazakhstan has declared LLP Prom Tech Industriya insolvent. Creditors have until Nov. 28, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of South Kazakhstan Ilyaev Str. 24 Shymkent South Kazakhstan Kazakhstan Tel: 8 (7252) 53-48-34 8 (7252) 54-02-36 VLADI-TRUST SK: Claims Deadline Slated for November 28 ------------------------------------------------------ The Specialized Inter-Regional Economic Court of North Kazakhstan has declared LLP Vladi-Trust SK insolvent. Creditors have until Nov. 28, 2008, Nov. 28, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of North Kazakhstan Jumabayev Str. 109-415 Petropavlovsk North Kazakhstan Kazakhstan WOOD-BANK CO: Claims Filing Period Ends November 28 --------------------------------------------------- LLP Wood-Bank Co. Ltd. has declared liquidation. Creditors have until Nov. 28, 2008, to submit written proofs of claims to: LLP Wood-Bank Co. Ltd. Gogol-Kaldayakov Str. 35/23 Almaty Kazakhstan Tel: 8 (7272) 34-23-36 =================== K Y R G Y Z S T A N =================== AQUA-NUR LLC: Creditors Must File Claims by November 14 ------------------------------------------------------- LLC Aqua-Nur has shut down. Creditors have until Nov. 14, 2008, to submit written proofs of claim to: LLC Aqua-Nur Tynystanov Str. 189a Bishkek Kyrgyzstan FORTRESS INVESTMENT: Fights to Keep German Unit Afloat ------------------------------------------------------ Fortress Investment Group LLC is taking action to keep two of its companies afloat, including its German residential real estate group, Gagfah S.A., that is seeking to raise additional equity to comply with its debt terms, Reuters reports, citing The Financial Times. Fortress is also struggling to preserve the value of its investments in Intrawest, a ski resort company based in Canada that has US$1.68 billion in debt due on October 23, Reuters writes. People familiar with Fortress told The Financial Times there is a low probability Intrawest will file for Chapter 11 bankruptcy protection, Reuters states. According to Reuters, the paper quoted a portion of a letter sent to investors on October 3 which said, "We are engaged in constructive discussions with the balance of the lending group." New York-based Fortress controls Intrawest via a US$1.37 billion equity stake. With Intrawest's debt trading at less than 70 cents on the dollar, Fortress has approached potential and existing lenders to discuss a refinancing involving US$1.4 billion in senior debt, the Financial Times reported, Reuters relates. It is putting in an additional US$100 million of capital to preserve its equity's value, but talks will be tricky since any member of the lending group can veto a deal, the paper said. About Fortress Investment Group Fortress Investment Group LLC, founded in 1998, is a global alternative asset manager that raises, invests and manages private equity funds, hedge funds and publicly traded alternative investment vehicles. Fortress earns management fees based on the size of its funds, incentive income based on the performance of the company's funds, and investment income from Fortress' principal investments in those funds. Its offering of alternative investment products includes private equity funds and hedge funds. The company refers to these investment products, collectively, as the Fortress Funds. As of Dec. 31, 2007, the company managed about US$33.2 billion of alternative assets in two core businesses: private equity funds and hedge funds. About Gagfah S.A. Gagfah S.A. -- http://www.gagfah.com/-- was founded in Luxembourg in July 2005 and, together with its affiliates, owns the GAGFAH GmbH Group, the NILEG GmbH Group, Acquisition 1 and the WOBA GmbH Group. Its core business is the acquisition, ownership and management of a geographically diversified and well maintained residential property portfolio throughout Germany. In September 2004, funds managed by Fortress Investment acquired the GAGFAH GmbH Group, which, as of June 30, 2006, owned 76,488 residential units, through two intermediate holding companies incorporated in the Republic of Ireland. With a portfolio of approximately 175,000 apartments located throughout Germany, the company is one of the largest privately held residential property owners and operators in Germany and we will become the largest listed residential property company in Germany upon completion of the offering. ==================== N E T H E RL A N D S ==================== ING GROEP: Inks Deal with Dutch Gov't to Strengthen Core Capital ---------------------------------------------------------------- ING Groep N.V. to issue EUR10 billion of core Tier-1 securities to Dutch State Transaction boosts Bank core Tier-1 ratio to 8%, strengthens Insurance balance sheet and reduces Group Debt/Equity ratio to 10% Core capital issue is non-dilutive to outstanding share capital ING to pass over final dividend for 2008 ING announced yesterday that it has reached an agreement with the Dutch government to strengthen its capital position, creating a strong buffer to navigate the current market and economic environment. ING will issue non-voting core Tier-1 securities for a total consideration of EUR10 billion to the Dutch State. The transaction will bring ING Bank's core Tier-1 ratio to around 8%, will strengthen the insurance balance sheet and will reduce ING Group's Debt/Equity ratio to around 10%. The strengthening of ING's capital follows the plans the Dutch government announced on October 9 to make capital available to financial enterprises that are fundamentally sound and viable. ING appreciates the measures the Dutch government is taking to boost confidence and stability in the Dutch financial system. "Our capital position was in line with previously targeted levels and regulatory requirements. However, market conditions have changed dramatically in recent weeks and have led to an internationally recognized belief that going forward, in this market environment, capital requirements for financial institutions should be higher," Michel Tilmant, CEO of ING, said. "We feel that at this time it is prudent to raise our core capital to reinforce our strong competitive position in this changing landscape. "This transaction does not dilute our existing shareholders while providing additional security to our 85 million customers. It reinforces our commitment to our strategy, management of our business portfolio and disciplined approach towards risk and capital management. ING will continue to build its franchise in the long-term interests of all stakeholders," added Michel Tilmant. Financial Details ING will issue 1 billion non-voting core Tier-1 securities to the Dutch State at a price of EUR10 per security. The Dutch Central Bank classifies the securities as core tier-1 capital. The securities are pari passu with ordinary common equity meaning the Dutch State will rank exactly the same as common shareholders. The structure of the transaction is designed to avoid dilution of existing shareholders. The security is only transferable with the permission of ING and the Dutch Central Bank. ING has the right to buy back all or some of the securities at any time at 150% of the issue price. Further, ING has the right to convert all or some of the securities into (depositary receipts for) ordinary shares on a one-for-one basis, from three years after the issuance onwards. If ING chooses to do so, the Dutch State can opt for repayment of the securities at EUR10 in cash. The coupon on the core Tier-1 securities is only payable if a dividend - either interim or final - is paid on common shares over the financial year preceding the coupon date. The annual coupon per security will be the higher of EUR0.85 or an amount equal to 110% of the dividend paid on ordinary shares for the year 2008, 120% for 2009 and 125% from 2010 and onwards. Given the exceptional circumstances, ING has decided to pass over the final dividend for 2008, leaving the total 2008 dividend at the EUR0.74 per share that was already paid as interim dividend. ING Group will use the proceeds of the transaction to increase shareholders' equity in ING Bank by EUR5 billion and to strengthen the balance sheet of ING Insurance by EUR2 billion. The remaining EUR3 billion will be used to reduce the Debt/Equity ratio at ING Group from 15% to around 10%. After this transaction, ING Bank's core Tier-1 ratio will be around 8%, with ING Bank's Tier-1 ratio above 10%. Corporate Governance Under the terms of the agreement, the Dutch State obtains the right to nominate two members for the ING Group Supervisory Board, to be elected at the ING General Meeting of Shareholders in 2009. These nominees will be represented on the Audit Committee, Corporate Governance Committee and Remuneration and Nomination Committee of the Supervisory Board and will have approval rights for decisions concerning equity issuance or buyback (except in connection with this transaction) and strategic transactions with a value equaling more than one quarter of ING's share capital and reserves. The ING Supervisory Board will review the remuneration policy for the Executive Board and senior management to align it with new international standards. This will include linking incentive schemes to long-term value creation and risk. All members of the ING Executive Board have volunteered to forego all bonuses – either in cash, options or shares – relating to the performance in 2008 and limit exit-arrangements to a maximum of one year's fixed salary. The capital strengthening transaction is expected to be settled by November 12, 2008. About ING Headquartered in Amsterdam, the Netherlands, ING -- http://www.ing.com/-- is a global financial services company providing banking, investments, life insurance and retirement services and operates in more than 50 countries. =============== P O R T U G A L =============== SOVEREIGN BANCORP: Banco Santander to Acquire Firm -------------------------------------------------- Banco Santander, S.A., will acquire Sovereign Bancorp Inc., in a stock-for-stock transaction. Banco Santander currently owns 24.35% of Sovereign Bancorp's ordinary outstanding shares. The Capital and Finance Committee composed of independent directors of Sovereign Bancorp requested that Banco Santander consider acquiring the 75.65% of Sovereign Bancorp that it did not currently own. The Capital and Finance Committee evaluated the transaction and recommended the transaction to the full Board. Under the terms of the definitive transaction agreement, which was approved by the Executive Committee of Banco Santander and unanimously approved by the non-Santander directors of Sovereign Bancorp, Sovereign Bancorp shareholders will receive 0.2924 Banco Santander American Depository Shares (ADSs) for every one share of Sovereign Bancorp common stock they own -- or one Banco Santander ADS for 3.42 Sovereign shares. Based on the closing stock price for Banco Santander ADSs on Oct. 10, 2008, the transaction has an aggregate value of approximately US$1.9 billion, or US$3.81 per share. The transaction meets Banco Santander's criteria for acquisitions, both strategically, by significantly enhancing the geographical diversification of the Group, and financially, with a projected net profit for Sovereign of US$750 million in 2011. Banco Santander's Executive Board Member Juan R. Inciarte stated, "This acquisition represents an excellent opportunity for Santander and for Sovereign. We know Sovereign very well. It is a strong commercial banking franchise in one of the most prosperous and productive regions of the United States, with high growth potential, which will further diversify Banco Santander's geographical reach. We look forward to working closely with Sovereign's senior management and welcoming the entire Sovereign team to Santander." Ralph Whitworth, Chairman of the Capital and Finance Committee of Sovereign Bancorp's Board of Directors, said, "Given the unprecedented uncertainty in the current market environment and the challenges facing Sovereign, we believe this is the right transaction at the right time for Sovereign. We considered our options and this transaction very carefully and believe that it provides stability and upside potential for Sovereign, its shareholders, customers, employees and other stakeholders. We know Santander well and look forward to working with them to close this transaction." The transaction is subject to customary closing conditions, including necessary bank regulatory approvals in the U.S. and Spain and approval by both companies' shareholders. Relational Investors, LLC has agreed to vote its 8.9% of Sovereign shares in favor of the transaction. In addition, all of the non-Santander directors have agreed to vote their shares in favor of the transaction. Banco Santander will call an Extraordinary General Meeting of the Bank's shareholders to approve a capital increase and issuance of approximately 147 million new shares, or approximately 2% of Banco Santander's capital. The transaction is expected to close in the first quarter of 2009. About Banco Santander Banco Santander, S.A. -- http://www.santander.com-- engages primarily in commercial banking with complementary activities in global wholesale banking, cards, asset management, and insurance. Founded in 1857, Santander had as of June, 2008, EUR918,332 million in assets and EUR1,050,928 million in managed funds, more than 80 million customers, 13,000 branches and a presence in some 40 countries. It is the largest financial group in Spain and Latin America. Through its Abbey subsidiary, Santander is the sixth largest bank in the United Kingdom, and is the third largest banking group in Portugal. Through Santander Consumer Finance, it also operates a leading franchise in 20 countries, with its principal focus in Europe (Germany, Italy and Spain, among others) and the U.S. In the first half of 2008, Santander registered EUR4,730 million in net attributable profit, an increase of 22% from the previous year, excluding capital gains. About Sovereign Bancorp Headquartered in Philadelphia, Sovereign Bancorp Inc. (NYSE: SOV) -- http://www.sovereignbank.com/-- is the parent company of Sovereign Bank, a financial institution with US$87 billion in assets as of Sept. 30, 2007, with principal markets in the Northeast United States. Sovereign Bank has 750 community banking offices, over 2,300 ATMs and approximately 12,000 team members. Sovereign offers a broad array of financial services and products including retail banking, business and corporate banking, cash management, capital markets, wealth management and insurance. * * * Sovereign Bancorp Inc. still carries Fitch's BB+ subordinate debt rating last placed on March 10, 2003. =========== R U S S I A =========== ALAPAYEVSKIY BOILER: Creditors Must File Claims by December 3 ------------------------------------------------------------- Creditors of OJSC Alapayevskiy Boiler Plant (TIN 6601002476) have until Dec. 3, 2008, to submit proofs of claims to: P. Podporin Insolvency Manager Office 211 Belinskogo Str. 34 City Official Post Office-573 620219 Yekaterinburg Russia The Arbitration Court of Sverdlovskaya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A60–26799/2007–S11 . The Court is located at: The Arbitration Court of Sverdlovsk Lenina Pr. 34 620151 Ekaterinburg Russia The Debtor can be reached at: OJSC Alapayevskiy Boiler Plant Pushkina Str. 193 Alapayevsk 624600 Sverdlovskaya Russia AVENUE OSTEUROPA: Moody's Puts B3 Rating on Review for Downgrade ---------------------------------------------------------------- Moody's Investors Service has placed on review for possible downgrade the B3 corporate family rating (CFR) and the B3 probability of default rating (PDR) of Avenue Osteuropa GmbH , the parent company of the Avenue Group, which is based in Moscow, Russia. At the same time, Moody's Interfax Rating Agency, which is majority owned by Moody's, placed on review for possible downgrade the Baa2.ru national scale credit rating (NSR) of Avenue as well as the provisional national scale rating of (P)B1.ru of the RUB3.5 billion of senior unsecured five-year notes due 2013 to be issued by Avenue Finance LLC, a finance subsidiary of Avenue, and guaranteed by Avenue. The rating action was prompted by increased uncertainties regarding the impact of the turmoil in the financial markets on the evolution of the general economic environment in Russia, coupled with Avenue's exposure to the highly cyclical real estate development business. Moody's has noted that the ability and willingness of local banks in Russia to provide local companies with sufficient funds to finance growth and day to day business have in the recent past been reduced, which may also have an effect on the liquidity position of Avenue. Moody's says that the rating review will focus on these issues: 1) Avenue's ability to produce adequate cash from operations in light of the company's decision to postpone the start of some development projects in response to market conditions 2) The company's exposure to liquidity and funding risk as the current dislocation in the credit markets may make the refinancing of its maturing borrowings more difficult to achieve. Moody's latest rating action on Avenue Osteuropa GmbH was the assignment of the company's B3 rating in May 2008. Avenue Group is a contractor for large-scale complex buildings as well as a residential and commercial real estate developer and investor in Moscow city centre and its regions. For the year ending December 31, 2006, the company recorded total revenues of RUB3.0 billion and total assets of RUB16.0 billion. BETON LLC: Creditors Must File Claims by December 2 --------------------------------------------------- Creditors of LLC Beton (TIN 2721134484) have until Dec. 2, 2008, to submit proofs of claims to: V. Radskiy Insolvency Manager Gamarnika Str.39/113 680030 Khabarovsk Russia The Arbitration Court of Khabarovsk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A73–13456/2007–36 . The Debtor can be reached at: LLC Beton Goglya Str.12/4 680030 Khabarovsk Russia OPIN JSC: Moody's Changes B1 Rating Outlook to Negative ------------------------------------------------------- Moody's Investors Service has changed the rating outlook to negative from stable for the B1 corporate family rating of JSC OPIN, which is based in Moscow, Russia. At the same time, Moody's Interfax Rating Agency, which is majority owned by Moody's, changed the outlook to negative from stable for OPIN's A2.ru national scale rating (NSR). The change in outlook was prompted by Moody's increased uncertainties regarding the impact of the turmoil in the financial markets on the evolution of the general economic environment in Russia, coupled with OPIN's exposure to the highly cyclical real estate development business. OPIN's ratings were assigned initially with the expectation that the positive business environment in Russia would continue. Moody's has also noted that the ability and willingness of local banks in Russia to provide local companies with sufficient funds to finance growth and day to day business have in the recent past been reduced. While this is not expected to have an impact on OPIN's liquidity position, it could contribute to falling demand from home buyers as investor confidence weakens. The B1 corporate family rating for OPIN is based on: (i) the company's status as one of the top ten Russian companies specializing in residential development and, in particular, its strong market niche in gated communities in the Moscow regions; (ii) vertical integration through its purchase of Viceroy Homes, a Canadian manufacturer of partially prefabricated homes, which has reduced its construction and design risks and build costs; (iii) its success in maintaining leverage at low levels, thanks in part to generous shareholder support; and (iv) the continuing strong real estate market conditions in Moscow for both residential and commercial property. However, Moody's notes that the ratings remain constrained by: (i) the risks associated with a strongly growing company, operating in a cyclical industry; (ii) OPIN's relatively narrow geographic diversification; (iii) the execution risk involved in turning Viceroy Homes into a profitable venture for the group; and (iv) the uncertainties inherent in the current operating environment in the Russian real estate industry, such as unpredictable shifts in licensing, and an evolving legal framework. Moody's last rating action was taken on July 3, 2008, when the B1 corporate family rating and A2.ru national scale rating were first assigned to OPIN. OPIN is a publicly quoted property development and investment company with a focus on elite and business class residential gated communities and Class A offices, largely in Moscow city center and its regions. For the year ending December 31, 2007, the company recorded total revenues of US$165 million and total assets of US$3.5 billion. LSR GROUP: Moody's Changes B1 Rating Outlook to Negative -------------------------------------------------------- Moody's Investors Service has changed the outlook on LSR's B1 corporate family rating to negative from stable and downgraded the company's national scale rating to A2.ru from A1.ru. The rating action was prompted by increased uncertainties regarding the development of the general economic environment in Russia, coupled with LSR's exposure to the highly cyclical real estate development business and its production of building materials together with the company's aggressive growth and planned high capital expenditure going forward. In addition, Moody's has noted that the ability and willingness of local banks in Russia to provide local companies with sufficient funds to finance growth and day to day business have in the recent past been reduced, which also may in the future have an effect on the liquidity position of LSR. The B1 rating incorporates Moody's expectation that LSR continues to be able to prudently fund its significant capex plans going forward. It also reflects the group's leading market positions in a market with high barriers to entry as well as the group's vertically integrated business model, providing it with good diversification and access to materials in a market and region that may face supply shortages in the construction sector. Currently the significant capex plans are covered by internal cash sources, such as cash balance, cash generated and by available long term credit lines, but there is limited room for weaker than expected cash flows in the short term. The company has so far successfully agreed on several long term bank facilities for its major expansion projects, but some of the required financing arrangements are still in the negotiating stage, failure of which would most likely force LSR to scale down some of its uncommitted capital expenditure. A downgrade of LSR's ratings would be possible if the future cash flows would be lower than initially expected leading to a RCF/Net Debt ratio of sustainably below 15% and/or the business environment in the Russian construction industry would continue to soften further as well as a weakening of the company's short term liquidity situation. Moody's latest rating action on LSR Group was the assignment of the company's B1 rating in July 2007. LSR Group is the largest producer of building materials in the St. Petersburg region and one of the largest real estate development companies in St. Petersburg. Per LTM 06/2008 the company recorded turnover of US$1.7 billion and an operating profit of US$340 million. MIRAX GROUP: Moody's Puts B2 CFR on Review for Possible Downgrade ----------------------------------------------------------------- Moody's Investors Service has placed on review for possible downgrade the B2 corporate family rating of Mirax Group LLC. At the same time, Moody's Interfax Rating Agency, which is majority owned by Moody's, placed on review for possible downgrade the A3.ru national scale credit rating of Mirax . Though Moody's notes that Mirax has announced the postponement of certain projects, the agency comments that the current market conditions may challenge the timely completion and marketing of the current pipeline of started projects, which includes some sizable buildings. The rating review will therefore focus on the following issues: 1) Mirax's ability to continue to generate positive cash flow to finance on-going projects and provide liquidity to the group. 2) The extent of the company's needs to complete the current backlog of projects and the intended sources of funding, both from customers and external sources. 3) The potential impact of the current market turmoil, and associated uncertainty in the capital and banking markets on the business model of the company and on its funding strategy. Mirax Group is now one of the five largest real estate development companies in Moscow, with a strong market position in the development of business class offices and premium housing. Apart from developing several residential and commercial real estate complexes, Mirax is currently constructing the Federation Tower which, when finished, will be the tallest building in Europe. In 2007, the company reported revenue of approximately RUR32.8 billion and EBITDA of RUR15.5 billion. The company is majority owned by Mr. Sergey Polonsky, chairman of the board of directors. Moody's last rating action was taken on July 10, 2008, when the outlook was changed from stable to developing for the B2 foreign currency corporate family rating and the A3.ru national scale rating assigned to Mirax Group LLC. MOSCOW INTEGRATED: S&P Assigns BB+/B Counterparty Credit Ratings ---------------------------------------------------------------- Standard & Poor's Ratings Services has assigned its 'BB+' long- term and 'B' short-term corporate credit ratings to Russian energy utility Moscow Integrated Power Company, JSC (MIPC), which is 83.77% owned by the government of the City of Moscow (BBB+/Stable/--). At the same time, S&P assigned an 'ruAA+' Russia national scale rating. The outlook is stable. "The ratings reflect MIPC's aggressive expansion strategy and sizable investment program, volatile and continually declining heat demand in its service area, and the company's lack of transparency and an explicit financial policy because of the ongoing consolidation of heat distribution assets," said S&P's credit analyst Sergei Gorin. Other rating constraints include MIPC's weak stand-alone liquidity position, a politicized tariff regime, and the transitional nature of the Russian economy. These weaknesses are mitigated by MIPC's dominant position as the city's district heating utility, its diversified customer base, relatively high wealth and economic diversification in its service area, support from the city's government, a relatively modern asset base, and moderate debt leverage (pro forma the recent acquisitions of the companies that own the heat assets it operates). Using its 'bottom-up' approach, S&P has incorporated support from the city's government through a two-notch uplift from the 'BB-' assessment of MIPC's stand-alone credit quality. MIPC distributes 93% of district heating supplies in Moscow via its trunk grids and 84% via distribution grids. Besides its maintenance capital expenditure program, MIPC has an ambitious medium-term investment plan, which requires substantial debt financing that could result in higher financial leverage. This risk is exacerbated by MIPC's lack of an explicit financial policy and financial risk management that may not be sophisticated enough to cope with its recent consolidation activities. At the end of 2007, MIPC's adjusted debt leverage was manageable. According to S&P's estimates, adjusted debt to EBITDA decreased to 2.1x after consolidation. Financial risk is aggravated by a weak debt structure: Most of the company's debt is short term. "The stable outlook reflects our expectation that MIPC will improve its currently weak liquidity and potentially obtain financial support from the City of Moscow to cover its debt maturities," said Mr. Gorin. S&P also expects MIPC's profitability and cash flow to improve in 2009 on the back of an expected 25% tariff increase (provisionally approved by the regulator) and to mitigate possible higher debt caused by investment financing. RENAISSANCE CAPITAL: Moody's Reviews Ratings for Poss. Downgrade ---------------------------------------------------------------- Moody's Investors Service said that it is continuing its review of the Ba3 long-term foreign currency and local currency issuer ratings of Renaissance Capital Holdings Limited commenced on September 25, 2008. The rating agency noted that RCHL continues to maintain an adequate liquidity profile -- a critical area of focus for Moody's during the current market dislocation. RCHL has a sizable liquidity pool composed of cash and unencumbered securities (mostly top-tier Russian equities and fixed-income securities), which, in conjunction with its committed liquidity facilities, should enable the firm to continue funding its operations in the event of a further reduction in secured funding and customer cash. "Moody's views positively the company's position of de-leveraging the business (also thanks to the equity increase by the new shareholder); the company's plans to continue to increase liquidity as well as to decrease credit risks," says Vladlen Kuznetsov, a Moscow-based Moody's Assistant Vice President- Analyst. Nonetheless, in Moody's view, the ongoing market dislocation and tight credit conditions continue to represent a risk for all institutions relying on the wholesale funding market, and this includes RCHL. As a result, during its review Moody's will continue to monitor RCHL's liquidity position and its impact on the company's overall credit profile. The review is also focused on RCHL's earnings prospects in the medium term, given continued high volatility and downward pressure on asset values. Although RCHL has a strong franchise in Russian capital markets, there is an increasing probability of protracted weakness in the primary markets and businesses, in which RCHL operates. These include trading in equity, fixed-income and derivatives markets from which it has reaped the majority of profits. Renaissance Capital Holdings Limited is the investment banking arm of the Renaissance Group, which also includes consumer finance, asset management and merchant banking. RCHL reported total consolidated assets of US$6.4 billion and total equity of USD917 million under IFRS as of June 30, 2008, but has reduced leverage significantly since then. In September 2008, a new shareholder -- Onexim Group (Not Rated) -- acquired 50% minus 1 share in RCHL, which resulted in an infusion of USD500 million of new capital into the firm. Onexim group is active in the mining industry, innovative projects in energy and nanotechnology, real estate and other industries, and has total assets of over US$25 billion. SERGEYEVSKIY COAL: Creditors Must File Claims by November 10 ------------------------------------------------------------ Creditors of LLC Sergeyevskiy Coal (TIN 2812007444, RVC 281201001) have until Nov. 10, 2008 to submit proofs of claims to: Yu. Koshelev Temporary Insolvency Manager Teplichnaya Str.12/32 Blagoveshchensk 675028 Amurskaya Russia The Arbitration Court of Amurskaya commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. A04–6540/08–11/464B. The Debtor can be reached at: LLC Sergeyevskiy Coal Sergeyevka Blagoveshchenskiy Amurskaya Russia SISTEMA-HALS OJSC: Clarifies Speculation on Exposure to Crisis -------------------------------------------------------------- In response to recent media speculation about Sistema-Hals and its potential exposure to the current global credit crisis, the Board of Sistema-Hals wishes to clarify that: -- Sistema-Hals currently has US$1.2 billion of debt of which only around 20% is short-term debt, approximately US$20 million of which falls due for repayment before the end of 2008. Repayment terms for most (c. US$700 million) of the long-term debt extends to 2012. -- Sistema-Hals' immediate priority is not servicing its debt but financing its construction program -- The company is currently finalizing its strategy, action plan and budget for 2009 developed in response to the current market conditions. The strategy will enable Sistema-Hals to exploit its core competitive advantage, in particular its diversified and high-quality portfolio of residential and commercial real estate projects as an alternative source of financing its construction program. In addition, Sistema-Hals continues to look at possible strategic partnerships for a number of its most capital- intensive projects in case of further deterioration of the market situation. The final strategy is due to be announced in November 2008 following its approval by the Board of Directors in late October 2008. Mr. Sergei Shmakov, President of Sistema-Hals, commented, "The global liquidity crisis which is affecting markets around the world, including the Russian real estate sector, has necessitated a prudent review of the priorities in our investment program. Taking a pragmatic approach, we are analyzing different scenarios of further evolution of the market conditions and developing appropriate action plans, based on of the Company's competitive advantages, such as scale of business, diversified portfolio of high quality projects, alternative sources of financing and experience of the new management team. Given the attractive, long term fundamentals of the Russian real estate market, and Sistema- Hals' key strengths, we believe that the company is well placed to ride out current market turbulence and continue its development in a medium term perspective." About Sistema-Hals Based in Moscow, JSC Sistema-Hals -- http://www.sistema-hals.ru/ -- is property developers in Moscow and the Moscow region, with operations in the six regions in Russia, as well as Yalta and Kiev, Ukraine. The company is involved in a number of large-scale governmental infrastructural projects in the capacity of project manager. Sistema-Hals is a 71.1% subsidiary of Sistema JSFC. * * * JSC Sistema-Hals continues to carry B1 long-term corporate family and probability-of-default ratings from Moody's Investor Service. The outlook according to Moody's is stable. Sistema-Hals also carries B+ issuer default rating from Fitch, which said the outlook is negative. SISTEMA-HALS: Moody's places Ba3 CFR on Review for Downgrade ------------------------------------------------------------ Moody's Investors Service has placed the Ba3 Corporate Family Rating and Senior Unsecured Rating of Sistema JSFC and B1 Corporate family rating of its 71.1% -owned real estate subsidiary Sistema-Hals on review for possible downgrade. The action reflects Moody's assessment that Sistema Hals's business profile is weakening in the face of challenging economic conditions aggravated by current conditions in the Russian real estate sector. The review also reflects some concern over the weakening broader operating environment of some of Sistema's - its lead shareholder- operations where Moody's is also undertaking a review given that a degree of support and interdependence exists between Sistema and its various holdings and operations such as Sistema Hals. The review will focus on: 1) standalone profiles of both entities; 2) Sistema-Hals' ability to convert current project work into cash proceeds, and maintain construction and completion rates at an acceptable level with the available financing in place; 3) Capacity of Sistema to provide support more broadly across the group; 4) Sistema's steps to strategically restructure the group's assets and optimize intra-company re-distributions of funds in accordance with the group's return on capital requirements; 5) Sistema's short to medium-term refinancing strategy with regard to its subsidiaries and Sistema holding, including balance of secured and unsecured obligations; Domiciled in Moscow, Russia, Sistema Joint Stock Financial Corporation is a diversified company operating in telecommunications, technology, banking, real estate, media, retail and other businesses. During fiscal year 2007, Sistema reported revenue of US$13.2 billion and OIBDA of US$5.28 billion. The founder of the company, Mr. Vladimir Evtushenkov, holds 64.2% of Sistema's common shares, 16.8% is held by the management and other shareholders, while 19% is in free float on the London Stock Exchange. Sistema-Hals, a 71.1% subsidiary of Sistema JSFC and headquartered in Moscow, Russia, is a property developer in Moscow and the Moscow region, with operations in six regions in Russia as well as Yalta and Kiev in the Ukraine. In addition to its real estate development business activities, the company is involved as project manager in a number of large-scale government infrastructure projects. During fiscal year 2007, Sistema-Hals reported revenue of US$452 million and EBITDA of US$64 million (US$163 million excluding stock-based compensation). UNECHSKIY VEGETABLE: Creditor Must File Claims by November 10 ------------------------------------------------------------- Creditors of OJSC Uchenskiy Dehydration Plant have until Nov. 10, 2008 to submit proofs of claims to: A. Kozlov Temporary Insolvency Manager Kalinina Str.119 241050 Bryansk Russia The Arbitration Court of Bryanskaya will convene on Feb. 25, 2009, to hear bankruptcy supervision procedure. The case is docketed under Case No. A09-6850/08-10. The Debtor can be reached at: OJSC Uchenskiy Dehydration Plant Krupskoy Str.22 Unecha 243300 Bryanskaya Russia ZEM-STROY-TREST: Kaliningrad Bankruptcy Hearing Set December 1 -------------------------------------------------------------- The Arbitration Court of Kaliningrad will convene at 11:00 a.m. on Dec. 1, 2008, to hear bankruptcy supervision procedure on LLC Zem- Stroy-Trest. The case is docketed under Case No. A21-2948/ 2008. The Temporary Insolvency Manager is: A. Morozov Post User Box 13 394038 Voronezh Russia The Court is located at: The Arbitration Court of Kaliningrad Rokossovskogo Str. 2 Kaliningrad Russia The Debtor can be reached at: LLC Zem-Stroy-Trest Prospect Mira 5/7 Kaliningrad Russia =========== S W E D E N =========== FORD MOTOR: Assures Clients of Auto Loans ----------------------------------------- Matthew Dolan at The Wall Street Journal reports that Ford Motor Co. said in a letter to dealers that it still has a credit arm that will lend clients who buy the company's cars. According to WSJ, Ford Motor was worried that car buyers were staying away from showrooms because they were convinced they wouldn't qualify for a loan. As reported in the Troubled Company Reporter on Oct. 15, 2008, GMAC LLC's CEO Al de Molina said that the company has "limited if any access to funding" for its mortgage and auto-lending units and that it may cut auto lending in some international markets and that it is considering strategic initiatives. WSJ states that a person familiar with the matter said that some Ford Motor dealers have relayed the corporate letter to potential clients in e-mails, assuring that the company continues to provide automotive lending and that "Ford Credit has not tightened its financing standards." Ford Motor is considering putting employee pricing on every model sold in the U.S., with financing through Ford Credit, WSJ relates, citing a person briefed on the company's plans at a meeting this month. According to the report, the campaign would also have a dealer cash payment of US$500 to US$1,500 included as part of the program. The report states that the program could be launched this month. About Ford Motor Co. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the company maintains a presence in Sweden, and the United Kingdom. The company also distributes its brands in various Latin-American regions, including Argentina and Brazil. * * * As reported in the Troubled Company Reporter on Oct. 10, 2008, Fitch Ratings downgraded the Issuer Default Rating of Ford Motor Company and Ford Motor Credit Company by one notch to 'CCC' from 'B-'. FORD MOTOR: S&P Places Ratings on 9 Transactions Under Neg. Watch ----------------------------------------------------------------- Standard & Poor's Ratings Services placed its ratings on nine Ford Motor Co.-related transactions on CreditWatch with negative implications. The rating actions reflect the Oct. 9, 2008, placement of the long-term corporate credit and senior unsecured debt ratings on Ford Motor Co. (Ford; B-/Watch Neg/NR) and its related entities on CreditWatch with negative implications. The nine transactions are pass-through transactions, and the ratings on the trusts are based solely on the senior unsecured ratings assigned to the underlying collateral. The underlying collateral consists of securities issued by Ford, as indicated in the list below. The corporate rating actions on Ford and its affiliates have no immediate rating impact on the Ford-related asset-backed securities supported by collateral pools of consumer auto loans or auto wholesale loans. Ratings Placed on Creditwatch Negative Corporate Backed Trust Certificates Ford Motor Co. Debenture- Backed Series 2001-36 Trust Rating ------ Class To From Underlying collateral ----- -- ---- --------------------- A1 CCC/Watch Neg CCC 7.7% deb due 05/15/2097 A2 CCC/Watch Neg CCC 7.7% deb due 05/15/2097 Corporate Backed Trust Certificates Ford Motor Company Note-Backed Series 2003-6 Trust Rating ------ Class To From Underlying collateral ----- -- ---- --------------------- A-1 CCC/Watch Neg CCC 7.45% Global Landmark Secs (GlobLS) notes due 07/16/2031 CorTS Trust For Ford Debentures Rating ------ Class To From Underlying collateral ----- -- ---- --------------------- Certs CCC/Watch Neg CCC 7.4% deb due 11/01/2046 CorTS Trust II For Ford Notes Series 2003-3 Rating ------ Class To From Underlying collateral ----- -- ---- --------------------- Certs CCC/Watch Neg CCC 7.45% Global Landmark Secs (GlobLS) notes due 07/16/2031 PPLUS Trust Series FMC-1 Rating ------ Class To From Underlying collateral ----- -- ---- --------------------- Certs CCC/Watch Neg CCC 7.45% Global Landmark Secs (GlobLS) notes due 07/16/2031 PreferredPlus Trust Series FRD-1 Rating ------ Class To From Underlying collateral ----- -- ---- --------------------- Certs CCC/Watch Neg CCC 7.4% deb due 11/01/2046 Public STEERS Series 1998 F-Z4 Trust Rating ------ Class To From Underlying collateral ----- -- ---- ---------------------- A CCC/Watch Neg CCC 7.7% deb due 05/15/2097 B CCC/Watch Neg CCC 7.7% deb due 05/15/2097 SATURNS Trust No. 2003-5 Rating ------ Class To From Underlying collateral ----- -- ---- --------------------- Units CCC/Watch Neg CCC 7.45% Global Landmark Secs (GlobLS) notes due 07/16/2031 Trust Certificates (TRUCs) Series 2002-1 Trust Rating ------ Class To From Underlying collateral ----- -- ---- --------------------- A-1 CCC/Watch Neg CCC 7.7% deb due 05/15/2097 ===================== S W I T Z E R L A N D ===================== BAHSOUN INTERNATIONAL: Oct. 31 Set as Deadline to File Claims ------------------------------------------------------------- Creditors owed money by LLC Bahsoun International Trade are requested to file their proofs of claim by Oct. 31, 2008, to: Bahsoun Ghassan Rubiswilstrasse 29 6438 Ibach SZ Switzerland The company is currently undergoing liquidation in Schlieren. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Oct. 2, 2007. BEROG HANDEL: Deadline to File Proofs of Claim Set Oct. 31 ---------------------------------------------------------- Creditors owed money by JSC Berog Handel are requested to file their proofs of claim by Oct. 31, 2008, to: Beatrice Gmeiner JSC KLT Treuhand Mail Box: 3144 6002 Luzern Switzerland The company is currently undergoing liquidation in Luzern. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on July 16, 2008. E. GEBISTORF JSC: Creditors Have Until Oct. 31 to File Claims ------------------------------------------------------------- Creditors owed money by JSC E.Gebistorf are requested to file their proofs of claim by Oct. 31, 2008, to: Edgar Gebistorf Im Lindengut 11 8803 Ruschlikon Switzerland The company is currently undergoing liquidation in Ruschlikon. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Sept. 4, 2008. GENERAL MOTORS: Launches Auto Loan Initiative --------------------------------------------- John D. Stoll at The Wall Street Journal reports that General Motors Corp. was set to launch Friday an initiative dubbed "Financing that Fits," aimed at letting consumers know they can still secure credit for a new GM car or truck. WSJ relates that auto lenders like GMAC LLC have decided to tighten lending terms. As reported in the Troubled Company Reporter on Oct. 15, 2008, GMAC's CEO Al de Molina said in an e- mail to workers that the company has "limited if any access to funding" for its mortgage and auto-lending units. Mr. de Molina said that the company may cut auto lending in some international markets and that it is considering "strategic initiatives." GMAC said that it is restricting auto lending to buyers with credit scores of at least 700, who are about 58% of U.S. consumers. According to WSJ, GM spokesperson John McDonald said that the campaign will show buyers that there are hundreds of banks, credit unions, and other lenders who are willing to do auto loans and leases. The report says that GM will try to do a sizable chunk of its lower-cost lending programs through GMAC. Mr. McDonald read off a list of banks, lenders, and credit unions participating in the program, although he acknowledged that buyers may not be doing business "with the lender your used to," WSJ reports. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. GM Europe is based in Zurich, Switzerland, while General Motors Latin America, Africa and Middle East is headquartered in Miramar, Florida. At June 30, 2008, the company's balance sheet showed total assets of US$136.0 billion, total liabilities of US$191.6 billion, and total stockholders' deficit of US$56.9 billion. For the quarter ended June 30, 2008, the company reported a net loss of US$15.4 billion over net sales and revenue of US$38.1 billion, compared to a net income of US$891.0 million over net sales and revenue of US$46.6 billion for the same period last year. GENERAL MOTORS: Appoints James Taylor as Hummer CEO --------------------------------------------------- General Motors Corp., as part of the ongoing business and strategic review of its Hummer brand, appointed James E. Taylor as Hummer's CEO. Mr. Taylor, formerly a Cadillac general manager, is responsible for the future strategy and current business of Hummer worldwide. This move marks a progression in the ongoing strategic review process and establishes the lead management structure for Hummer going forward. Martin Walsh, currently general manager of Hummer, will team with Mr. Taylor on the transition and ongoing dealer relations, and then will move to another assignment that will be announced soon. Mr. Taylor has been Cadillac general manager since 2004, and even prior to that he was a key architect in Cadillac's design and technology resurgence. As the global Vehicle Line Executive for Cadillac, Mr. Taylor led the development of a series of new models -- beginning with the Cadillac CTS -- that ushered in a new and distinctive generation of dramatically designed, high performing vehicles. Mr. Taylor joined GM in 1980 and since has held a number of business and marketing leadership roles, including those at Saturn, Adam Opel, Worldwide Purchasing and GM Truck. Mr. Taylor reports to Mark C. McNabb, North America vice president, Cadillac/Premium Channel. Mr. McNabb joined GM in 2008 to assume leadership of GM's premium brands, Cadillac, Hummer and Saab USA. "By creating a new and more comprehensive leadership position for Hummer with Jim Taylor as the top executive, we are bolstering the strategic review process and the brand," said Mark LaNeve, GMNA vice president of Vehicle Sales, Service and Marketing. "At the same time, we're sharpening our focus on Cadillac as GM's flagship brand in the global luxury marketplace under Mark McNabb's leadership," Mr. LaNeve added. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. GM Europe is based in Zurich, Switzerland, while General Motors Latin America, Africa and Middle East is headquartered in Miramar, Florida. At June 30, 2008, the company's balance sheet showed total assets of US$136.0 billion, total liabilities of US$191.6 billion, and total stockholders' deficit of US$56.9 billion. For the quarter ended June 30, 2008, the company reported a net loss of US$15.4 billion over net sales and revenue of US$38.1 billion, compared to a net income of US$891.0 million over net sales and revenue of US$46.6 billion for the same period last year. GENERAL MOTORS: Wants Merger Deal With Chrysler This Month ---------------------------------------------------------- General Motors Corp. wants to reach a merger deal with Chrysler LLC before the end of October, The Wall Street Journal reports, citing sources familiar with the matter. John Letzing at MarketWatch relates that banks and other lenders support the planned merger. WSJ relates that J.P. Morgan Chase & Co. -- one of Chrysler's largest holders -- and Cerberus Capital Management, which owns Chrysler, are supporting the deal. According to WSJ, sources said that GM is seeking to complete the deal as soon as the end of this month, as it is expected to report dismal third-quarter earnings in coming weeks and is looking new sources of funding. The report says that GM has created teams of people analyzing potential cost-cutting and savings it can do with Chrysler. WSJ states that GM will lay off 1,500 workers in coming months at three assembly plants. Marketwatch relates that the layoffs will affect hourly workers at plants in Michigan and Delaware. Chrysler CEO Won't Comment on GM Talks Tom Krisher at The Associated Press relates that Chrysler's CEO Bob Nardelli didn't comment on the company's merger talks with GM, but said that a steep drop in U.S. auto sales has led to industry consolidation. "It certainly creates an environment for consolidation where you can get synergies of productivity that will allow you to be more competitive, not only here in the U.S. market, but on a global basis," The AP quoted Mr. Nardelli as saying. Mr. Nardelli said that Chrysler has had to reduce factory capacity by 1.1 million vehicles due to the slump, The AP relates. Mr. Nardelli, says The AP, said on the CNBC cable channel that Chrysler has been open about seeking partners and creating alliances. About Chrysler LLC Headquartered in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- a unit of Cerberus Capital Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R) brand vehicles and products. The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia. * * * As reported in the Troubled Company Reporter on Aug. 11, 2008, Standard & Poor's Ratings Services lowered its ratings on Chrysler LLC, including the corporate credit rating, to 'CCC+' from 'B-'. On July 31, 2008, TCR said that Fitch Ratings downgraded the Issuer Default Rating of Chrysler LLC to 'CCC' from 'B-'. The Rating Outlook is Negative. The downgrade reflects Chrysler's restricted access to economic retail financing for its vehicles, which is expected to result in a further step-down in retail volumes. Lack of competitive financing is also expected to result in more costly subvention payments and other forms of sales incentives. Fitch is also concerned with the state of the securitization market and the ability of the automakers to access this market on an economic basis over the near term, given the steep drop in residual values, higher default rates, higher loss severity being experienced and jittery capital market. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. GM Europe is based in Zurich, Switzerland, while General Motors Latin America, Africa and Middle East is headquartered in Miramar, Florida. At June 30, 2008, the company's balance sheet showed total assets of US$136.0 billion, total liabilities of US$191.6 billion, and total stockholders' deficit of US$56.9 billion. For the quarter ended June 30, 2008, the company reported a net loss of US$15.4 billion over net sales and revenue of US$38.1 billion, compared to a net income of US$891.0 million over net sales and revenue of US$46.6 billion for the same period last year. SIMPEX PHARMATECH: Proofs of Claim Filing Deadline is Oct. 31 -------------------------------------------------------------- Creditors owed money by JSC Simpex Pharmatech are requested to file their proofs of claim by Oct. 31, 2008, to: Lorenzo Scarascia Carl-Guntert-Strasse 23 4310 Rheinfelden Switzerland The company is currently undergoing liquidation in Basel. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Sept. 12, 2008. SP PRODUKTION: Creditors Must File Proofs of Claim by Oct. 31 -------------------------------------------------------------- Creditors owed money by JSC SP Produktion are requested to file their proofs of claim by Oct. 31, 2008, to: JSC Poledna Boss Kurer Mail Box 865 8034 Zurich Switzerland The company is currently undergoing liquidation in Grub AR. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Oct. 30, 2007. SWISS-MEMO MANAGEMENT: Creditors' Claims Due by Oct. 31 ------------------------------------------------------- Creditors owed money by LLC Swiss-Memo Management are requested to file their proofs of claim by Oct. 31, 2008, to: Andreas Mark Sonnenweg 8 7402 Bonaduz Switzerland The company is currently undergoing liquidation in Bonaduz. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Sept. 3, 2008. ============= U K R A I N E ============= AVIRONT LLC: Creditors Must File Claims by October 22 ----------------------------------------------------- Creditors of LLC Commerce Group Aviront (code EDRPOU 34732017) have until Oct. 22, 2008, to submit proofs of claim to: LLC Trading House Dary Uzbekistana Liquidator Ac. Tupolev Str. 19 04128 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on July 30, 2008. The case is docketed as 49/162-b. The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine BELON COMUNICATION: Creditors Must File Claims by October 22 ------------------------------------------------------------ Creditors of LLC Belon Comunication (code EDRPOU 34834194) have until Oct. 22, 2008, to submit proofs of claim to: LLC Legal Firm Law and Business Liquidator Ap. 414 Gnat Yura Str. 9 03164 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on July 30, 2008. The case is docketed as 49/161-b. The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine TERLAND-AGRO LLC: Creditors Must File Claims by October 22 ---------------------------------------------------------- Creditors of LLC Company Terland-Agro (code EDRPOU 32577105) have until Oct. 22, 2008, to submit proofs of claim to: Anatoly Okriak Liquidator/Insolvency Manager Lipovaya Str. 17/1 46001 Ternopol Ukraine Tel: 8-0352-25-71-20 The Economic Court of Ternopol commenced bankruptcy proceedings against the company after finding it insolvent on Aug. 13, 2008. The case is docketed as 10/B-1041. The Economic Court of Ternopol Ostrozsky Str. 14a 46000 Ternopol Ukraine The Debtor can be reached at: LLC Company Terland-Agro S. Bandera Str. 60 46000 Ternopol Ukraine ENTERPRISE ABRIS: Creditors Must File Claims by October 22 ---------------------------------------------------------- Creditors of CJSC Enterprise Abris (code EDRPOU 13712475) have until Oct. 22, 2008, to submit proofs of claim to: Igor Shevchenko Temporary insolvency manager Ap. 172 Kharkov Str. 4 40024 Sumy Ukraine The Economic Court of Kiev commenced the bankruptcy supervision procedure on the company on July 14, 2008. The case is docketed as B3/181-08. The Economic Court of Kiev Komintern Str. 16 01032 Kiev Ukraine The Debtor can be reached at: CJSC Enterprise Abris Tbilisi Quarter 19 Slavutich 07100 Kiev Ukraine FLORESENCE UKRAINE: Creditors Must File Claims by October 22 ------------------------------------------------------------ Creditors of LLC Floresence Ukraine (code EDRPOU 30262803) have until Oct. 22, 2008, to submit proofs of claim to: LLC Legal Firm Law and Business Liquidator Ap. 414 Gnat Yura Str. 9 03164 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on July 21, 2008. The case is docketed as 49/156-b. The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine LIK CJSC: Creditors Must File Claims by October 22 -------------------------------------------------- Creditors of CJSC Television Company LIK (code EDRPOU 24739750) have until Oct. 22, 2008, to submit proofs of claim to: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on July 30, 2008. The case is docketed as 24/208-b. The Debtor can be reached at: CJSC Television Company LIK Glybochetskaya Str. 28 04050 Kiev Ukraine LINEN FOREVER: Creditors Must File Claims by October 22 ------------------------------------------------------- Creditors of LLC Linen Forever (code EDRPOU 32471719) have until Oct. 22, 2008, to submit proofs of claim to: I. Dragun Temporary Insolvency Manager Sobornaya Str. 34/14 33028 Rivne Ukraine The Economic Court of Rivne commenced bankruptcy supervision procedure on the company on Aug. 22, 2008. The case is docketed as 4/39. The Economic Court of Rivne Yavornitskiy Str. 59 33001 Rivne Ukraine The Debtor can be reached at: LLC Linen Forever Fabrichnaya Str. 12 33009 Rivne Ukraine NAFTOGAZ: Bondholders' Meeting Set Oct. 28; Seeks Bond Waiver ------------------------------------------------------------- Naftogaz has called a bondholders' meeting for Oct. 28, seeking a waiver of default on a US$500 million Eurobond, Carolyn Cohn of Reuters writes, citing a source familiar with the issue. According to the report, Naftogaz is technically in default on the bond, due in 2009, because it failed to submit audited accounts for 2007. However, a Naftogaz official said the company might be ready to submit the 2007 accounts before Dec. 31, the report notes. Investors, the report relates, have expressed concerns that should Naftogaz default on this bond, clauses in other debt agreements would force it to pay out a total of US$2.5 billion, although the government has provided a US$2.4 billion sovereign guarantee. Citing Luis Costa, emerging debt strategist at Commerzbank, the report discloses the yield on the bond has risen to 24-25%, while Naftogaz' five-year credit default swaps, used to insure against restructuring or default of debt, are trading at elevated levels around 2,000 basis points, indicating a strong risk of default. The report says markets are pricing in an increasing risk of default both for Naftogaz and for Ukraine itself, reflecting political instability and mounting microeconomic problems in the country. About NJSC Naftogaz of Ukraine Headquartered in Kiev, Ukraine, NJSC Naftogaz of Ukraine -- http://www.naftogaz.com/-- processes gas, oil and condensate at the Company's five gas processing plants, which produce LPG, motor fuels and other types of petroleum products. Over 97% of the oil and gas in Ukraine is produced by the enterprises of the Company. * * * As reported in the TCR-Europe on Aug. 12, 2008, Moody's Investors Service downgraded the Ba3 foreign currency corporate family rating and Probability of Default rating of NJSC Naftogaz of Ukraine to B1 and concurrently assigned a Developing outlook. This rating action concludes Moody's review for downgrade of Naftogaz's ratings. In line with the CFR, Moody's also changed the rating of US$500 million senior unsecured Loan Participation notes of Naftogaz from Ba3 to B1, the outlook is developing. Moody's also concluded a review of the sovereign ratings of Ukraine with the affirmation of the Ukraine's B1 foreign and local currency debt ratings in conjunction with the assignment of a positive outlook which did not impact Naftogaz's ratings. NEWS-SERVICE LLC: Creditors Must File Claims by October 22 ---------------------------------------------------------- Creditors of LLC News-Service (code EDRPOU 33445187) have until Oct. 22, 2008, to submit proofs of claim to: LLC Tomatnaya Strana Liquidator Ap. 34 Pobeda Avenue 136 03115 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on July 30, 2008. The case is docketed as 49/159-b. The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine PRILADAVIA LLC: Creditors Must File Claims by October 22 -------------------------------------------------------- Creditors of LLC Priladavia (code EDRPOU 34192253) have until Oct. 22, 2008, to submit proofs of claim to: LLC Trading House Dary Uzbekistana Liquidator Ac. Tupolev Str. 19 04128 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on July 30, 2008. The case is docketed as 49/158-b. The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine REGION BUILDING: Creditors Must File Claims by October 22 --------------------------------------------------------- Creditors of LLC Region Building Service-2004 (code EDRPOU 21764931) have until Oct. 22, 2008, to submit proofs of claim to: Andrew Levin Liquidator Mendeleyev Str. 59/35 Rubezhnoye Lugansk Ukraine The Economic Court of Lugansk commenced bankruptcy proceedings against the company after finding it insolvent on Sept. 8, 2008. The case is docketed as 12/62b. The Economic Court of Lugansk Geroiv VVV Square 3a 91000 Lugansk Ukraine The Debtor can be reached at: LLC Region Building Service-2004 Ap. 101-103 Sovetsky Avenue 74 Severodonetsk 93400 Lugansk Ukraine VALMI-KIEV LLC: Creditors Must File Claims by October 22 -------------------------------------------------------- Creditors of LLC Distribution Valmi-Kiev (code EDRPOU 34644921) have until Oct. 22, 2008, to submit proofs of claim to: LLC Legal Firm Dobry Sovet Liquidator General Naumov Str. 23-b 03164 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on July 30, 2008. The case is docketed as 49/157-b. The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine YUKANT-COMPANY LLC: Creditors Must File Claims by October 22 ------------------------------------------------------------ Creditors of LLC Yukant-Company (code EDRPOU 34646054) have until Oct. 22, 2008, to submit proofs of claim to: LLC Uzbekistan Fruits and Vegetables Liquidator Ap. 34 Pobeda Avenue 136 03115 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on July 30, 2008. The case is docketed as 49/163-b. The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine YUZHNY LLC: Creditors Must File Claims by October 22 ---------------------------------------------------- Creditors of LLC Trading House Yuzhny (code EDRPOU 32224932) have until Oct. 22, 2008, to submit proofs of claim to: The Economic Court of Odessa Shevchenko Avenue 4 65032 Odessa Ukraine The Economic Court of Odessa commenced bankruptcy supervision procedure on the company on Aug. 12, 2008. The case is docketed as 2/159-08-3389. The Debtor can be reached at: LLC Trading House Yuzhny Starosennaya Square 1 65023 Odessa Ukraine ZARIA OJSC: Creditors Must File Claims by October 22 ---------------------------------------------------- Creditors of OJSC Chemical Union Zaria (code EDRPOU 33648129) have until Oct. 22, 2008, to submit proofs of claim to: V. Levchenko Liquidator/Insolvency Manager Transportny Lane 19 Cherkassy Ukraine Tel: 8(0472)65-74-21 The Economic Court of Cherkassy commenced bankruptcy proceedings against the company after finding it insolvent on June 17, 2008. The case is docketed as 14/2489. The Economic Court of Cherkassy Shevchenko Avenue 307 18005 Cherkassy Ukraine The Debtor can be reached at: OJSC Chemical Union Zaria Zagorodniaya Str. 1 Verkhniachka Khristinovka District Cherkassy Ukraine * S&P Puts Ukrainian Banks' B+/B Credit Ratings on Negative Watch ----------------------------------------------------------------- Standard & Poor's Ratings Services has placed its 'B+' long-term and 'B' short-term counterparty credit ratings on Alfa-Bank Ukraine (Alfa), JSC KREDOBANK (Kredo), and Ukrsotsbank OJSC on CreditWatch with negative implications. At the same time, the 'uaA-' Ukraine national scale ratings on Alfa and Kredo were also placed on CreditWatch with negative implications. These rating actions follow the placement of the ratings on Ukraine (foreign currency: B+/Watch Neg/B, local currency: BB- /Watch Neg/B, national scale: uaAA) on CreditWatch with negative implications. The rating action on Ukraine reflects S&P's concerns about the impact of a deteriorating economic situation and associated exchange-rate depreciation on the country's financial sector asset quality, especially in light of the high level of private sector foreign currency borrowing. "We expect to resolve the sovereign CreditWatch placement this month, after which we will resolve the CreditWatch placement of the three banks. The ratings on the banks will be affected if any downside action on the sovereign takes place following the CreditWatch resolution," said S&P's credit analyst Annette Ess. * UKRAINE: President Must Trash Election to Get IMF's Assistance ---------------------------------------------------------------- The International Monetary Fund is poised to lend up to US$14 billion to Ukraine granted that Ukrainian president Viktor Yushchenko scrap his plans for a snap election, Reuters and the International Herald Tribune write. Ukraine has sought the IMF for assistance amid the financial crisis in the country, The Associated Press reports, citing the IMF. Reuters notes that Iceland, Hungary and Serbia have also approached the IMF for help. Prime Minister Yulia Tymoshenko remained defiant saying her faction in parliament will not support the law, the IHT writes. Members of Ms. Tymoshenko's party blocked parliament's work last week, preventing laws from being passed. She again called on ally-turned-rival, president Yushchenko, to revive their coalition. Amid Ms. Tymoshenko's opposition, the government passed amendments in the law Thursday allowing the allocation of the money for the elections. The amendments must be approved by parliament to pave the way for the early vote, which president Yushchenko wants to schedule for December 7. Meanwhile, Ms. Tymoshenko asserted that if president Yushchenko wants the badly needed IMF loan, he will have to drop the early election plans. Reuters says that the IMF office in Kiev declined to comment while the IHT says the wide range of the amount could not be immediately explained. According to the central bank's First Deputy Chairman, Anatoly Shapovalov, the size of the credit from the IMF would depend on Ukraine's quota subscription in the Fund, Reuters relates. An undisclosed central bank official said Ukraine's quota was the equivalent of US$2 billion and that countries can receive three to five times their quota or US$6 billion to US$10 billion. The rest could come from other international organizations. However, Reuters notes that the country's economy had been growing at about 7% annually, and is expected to slow to 2.5% next year, based on an IMF data. * * * As reported by the Troubled Company Reporter-Europe on Oct. 17, 2008, Standard & Poor's Ratings Services placed these ratings on Ukraine on CreditWatch with negative implications: its 'B+/B' foreign currency and 'BB-/B' local currency sovereign credit ratings on its global scale; and its 'uaAA' ratings on its national scale. A resolution of the CreditWatch action is likely this month pending further clarification of the government's strategy in addressing the intensifying stresses in Ukraine's financial sector, which could require capital injections from the government. S&P is in the process of assessing these potential fiscal costs and the impact of weakened growth prospects on the budgetary position of the government. The TCR-Europe on Oct. 15, 2008, citing The Financial Times, reported that Ukraine's central bank, The National Bank of Ukraine (NBU) imposed a six-month freeze on the early withdrawal of deposits from commercial banks to prevent a run, more than tripled its guarantee on deposits to US$38,000 (EUR28,100, GBP22,350) and increased reserve requirements for banks. On Sept. 29, 2008, the TCR-Europe related that Fitch Ratings revised Ukraine's Outlook to Negative from Stable. Its ratings are affirmed at Long-term foreign and local Issuer Default 'BB-' and at Short-term foreign currency IDR 'B'. The agency has also affirmed the Country Ceiling at 'BB-'. =========================== U N I T E D K I N G D O M =========================== AMERICAN INT'L: Maurice Greenberg Wants to Change Gov't Loan Terms ------------------------------------------------------------------ Jay Miller at The Wall Street Journal reports that Maurice Greenberg, shareholder and former CEO of American International Group, proposed changes to the terms of the US$85 billion loan the company secured from the government, in exchange for an almost 80% stake in the firm. In addition to the loan, WSJ relates that AIG was also cleared to borrow another US$37.8 billion to ease strains from a program that involves AIG's lending securities to third parties. According to WSJ, Mr. Greenberg claimed that the terms of the government loan would result in the liquidation of AIG. WSJ relates that the interest charges of the loan add up to US$1 billion per month. AIG entered into an agreement with the Federal Reserve Bank of New York to obtain the loan through a two- year credit facility that requires the company to pay: -- 2% one-time commitment fee, -- 8.5% interest on undrawn capital, and -- on drawn capital, the London interbank offered rate plus 8.5%. WSJ states that Mr. Greenberg wanted the government would change the terms so that the government would get nonvoting preferred stock with a 5% to 6% dividend and a 10-year right of redemption at a 10% premium. Mr. Greenberg, says WSJ, said that the government's US$700 billion bailout fund and changes to market-to-market accounting could allow AIG to redeem the preferred stock in less than 10 years. According to WSJ, Mr. Greenberg said in a letter filed with the Securities and Exchange Commission, "At a minimum, AIG should be afforded the same borrowing terms as other companies. Since the time the credit facility was entered into, the Federal Reserve has stepped up direct lending to scores of financial institutions and, for the first time last week, to nonfinancial institutions. They are able to borrow on terms far less onerous than those imposed on AIG." AIG said in a statement that it is "open to all serious proposals that can benefit taxpayers and AIG shareholders. We continue to focus on maximizing the value of our businesses and servicing our customers so we can pay the Fed loan and emerge as a vital ongoing business." About American International Group Based in New York City, American International Group Inc. -- http://www.aig.com/-- (NYSE: AIG) is an international insurance and financial services organization, with operations in more than 130 countries and jurisdictions. The company is engaged through subsidiaries in General Insurance, Life Insurance & Retirement Services, Financial Services and Asset Management. The company's British headquarters are located on Fenchurch Street in London, continental Europe operations are based in La Defense, Paris, and its Asian HQ is in Hong Kong. AIG owns Ocean Finance, a United Kingdom based company providing home owner loans, mortgages and remortgages. AIG operates in the UK with the brands AIG UK, AIG Life and AIG Direct. It has about 3,000 employees, and sponsors the Manchester United football club. In response to redemption demands, AIG Life (UK) suspended redemptions of its AIG Premier Bond money market fund on Sept. 19, 2008, in order to provide an orderly withdrawal of assets. The company has locations in Argentina, Aruba, Bahamas, Bermuda, Brazil, Cayman Islands, Chile, Colombia, Dominica, Ecuador, El Salvador, Grenada, Guatemala, Haiti, Honduras, Jamaica, Mexico, Panama, Peru, Puerto Rico, Trinidad, Uruguay, Venezuela and Virgin Islands. US$85,000,000,000 Federal Reserve Loan The Federal Reserve Bank of New York extended to AIG a revolving credit facility up to US$85 billion. AIG's borrowings under the revolving credit facility will bear interest, for each day, at a rate per annum equal to three-month Libor plus 8.50%. The revolving credit facility will have a 24-month term and will be secured by a pledge of assets of AIG and various subsidiaries. The Credit Facility provides for a 79.9% equity interest in AIG. The Credit Facility provides for an initial gross commitment fee of 2% of the total Credit Facility on the closing date. AIG, in a regulatory filing with the Securities and Exchange Commission, said it will pay a commitment fee on undrawn amounts at the rate of 8.5% per annum. Interest and the commitment fees are generally payable through an increase in the outstanding balance under the Credit Facility. Borrowings under the Credit Facility are conditioned on the NY Fed being reasonably satisfied with, among other things, AIG's corporate governance. AIG is required to repay the Credit Facility from, among other things, the proceeds of certain asset sales and issuances of debt or equity securities. These mandatory repayments permanently reduce the amount available to be borrowed under the Credit Facility. In a statement, the company said "AIG is a solid company with over US$1 trillion in assets and substantial equity, but it has been recently experiencing serious liquidity issues." Standard & Poor's Ratings Services has revised the CreditWatch status of most of its ratings on the AIG group of companies -- including its 'A-' long-term counterparty credit ratings on American International Group Inc. and International Lease Finance Corp. and the 'A+' counterparty credit and financial strength ratings on most of AIG's insurance operating subsidiaries -- to CreditWatch developing from CreditWatch negative. Fitch Ratings revised its Rating Watch on American International Group, Inc. to Evolving from Negative. Fitch viewed this transaction as a favorable development that alleviates significant near-term liquidity concerns. The Troubled Company Reporter reported on Sept. 19, 2008 that that Edward Liddy replaced Robert Willumstad as AIG's CEO. * * * In a U.S. Securities and Exchange Commission filing dated Aug. 6, 2008, AIG reported a net loss for the second quarter of 2008 of US$5.36 billion compared to 2007 second quarter net income of US$4.28 billion. Second quarter 2008 adjusted net loss was US$1.32 billion, compared to adjusted net income of US$4.63 billion for the second quarter of 2007. The continuation of the weak U.S. housing market and disruption in the credit markets, as well as global equity market volatility, had a substantial adverse effect on AIG's results in the second quarter. Net loss for the first six months of 2008 was US$13.16 billion, compared to net income of US$8.41 billion in the first six months of 2007. Adjusted net loss for the first six months of 2008 was US$4.88 billion, compared to adjusted net income of US$9.02 billion in the first six months of 2007. AMERICAN INT'L: David Herzog Replaces Stephen Bensinger as CFO -------------------------------------------------------------- American International Group, Inc., said Thursday that comptroller David L. Herzog will be replacing Stephen J. Bensinger as chief financial officer of the company, the Associated Press reported Thursday. Mr. Bensinger, acting finance chief of the company since May, will be leaving, the company said. Mr. Herzog will "oversee the company's plan to shore up its capital and repay the more than US$100 billion in loans it has received from the Federal Reserve". The Federal Reserve rescued AIG last month with a two-year, US$85 billion credit line, in order that it could meet its CDS obligations, as the alternative would have caused a chain of defaults in the financial system, according to federal regulators. Banks and other institutions use credit default swaps to hedge against the risk of default in mortgage and other debt securities they hold. CDS contracts, which are privately negotiated transactions, are not regulated by federal authorities. AIG had drawn a total of US$70.3 billion on the US$85 billion credit line from the Fed as of last week. The company also said last week it would receive an additional US$37.8 billion loan from the central bank. AIG shares closed unchanged at US$2.43 Thursday. Bloomberg's Aaron Pan reported Wednesday that credit legislators and federal regulators have "called for more oversight of the unregulated US$54.6 trillion market after the bankruptcy of Lehman Brothers Holdings Inc., which was among the top 10 counterparties of the contracts". About American International Group Based in New York City, American International Group Inc. -- http://www.aig.com/-- (NYSE: AIG) is an international insurance and financial services organization, with operations in more than 130 countries and jurisdictions. The company is engaged through subsidiaries in General Insurance, Life Insurance & Retirement Services, Financial Services and Asset Management. The company's British headquarters are located on Fenchurch Street in London, continental Europe operations are based in La Defense, Paris, and its Asian HQ is in Hong Kong. AIG owns Ocean Finance, a United Kingdom based company providing home owner loans, mortgages and remortgages. AIG operates in the UK with the brands AIG UK, AIG Life and AIG Direct. It has about 3,000 employees, and sponsors the Manchester United football club. In response to redemption demands, AIG Life (UK) suspended redemptions of its AIG Premier Bond money market fund on Sept. 19, 2008, in order to provide an orderly withdrawal of assets. The company has locations in Argentina, Aruba, Bahamas, Bermuda, Brazil, Cayman Islands, Chile, Colombia, Dominica, Ecuador, El Salvador, Grenada, Guatemala, Haiti, Honduras, Jamaica, Mexico, Panama, Peru, Puerto Rico, Trinidad, Uruguay, Venezuela and Virgin Islands. US$85,000,000,000 Federal Reserve Loan The Federal Reserve Bank of New York extended to AIG a revolving credit facility up to US$85 billion. AIG's borrowings under the revolving credit facility will bear interest, for each day, at a rate per annum equal to three-month Libor plus 8.50%. The revolving credit facility will have a 24-month term and will be secured by a pledge of assets of AIG and various subsidiaries. The Credit Facility provides for a 79.9% equity interest in AIG. The Credit Facility provides for an initial gross commitment fee of 2% of the total Credit Facility on the closing date. AIG, in a regulatory filing with the Securities and Exchange Commission, said it will pay a commitment fee on undrawn amounts at the rate of 8.5% per annum. Interest and the commitment fees are generally payable through an increase in the outstanding balance under the Credit Facility. Borrowings under the Credit Facility are conditioned on the NY Fed being reasonably satisfied with, among other things, AIG's corporate governance. AIG is required to repay the Credit Facility from, among other things, the proceeds of certain asset sales and issuances of debt or equity securities. These mandatory repayments permanently reduce the amount available to be borrowed under the Credit Facility. In a statement, the company said "AIG is a solid company with over US$1 trillion in assets and substantial equity, but it has been recently experiencing serious liquidity issues." Standard & Poor's Ratings Services has revised the CreditWatch status of most of its ratings on the AIG group of companies -- including its 'A-' long-term counterparty credit ratings on American International Group Inc. and International Lease Finance Corp. and the 'A+' counterparty credit and financial strength ratings on most of AIG's insurance operating subsidiaries -- to CreditWatch developing from CreditWatch negative. Fitch Ratings revised its Rating Watch on American International Group, Inc. to Evolving from Negative. Fitch viewed this transaction as a favorable development that alleviates significant near-term liquidity concerns. The Troubled Company Reporter reported on Sept. 19, 2008 that that Edward Liddy replaced Robert Willumstad as AIG's CEO. * * * In a U.S. Securities and Exchange Commission filing dated Aug. 6, 2008, AIG reported a net loss for the second quarter of 2008 of US$5.36 billion compared to 2007 second quarter net income of US$4.28 billion. Second quarter 2008 adjusted net loss was US$1.32 billion, compared to adjusted net income of US$4.63 billion for the second quarter of 2007. The continuation of the weak U.S. housing market and disruption in the credit markets, as well as global equity market volatility, had a substantial adverse effect on AIG's results in the second quarter. Net loss for the first six months of 2008 was US$13.16 billion, compared to net income of US$8.41 billion in the first six months of 2007. Adjusted net loss for the first six months of 2008 was US$4.88 billion, compared to adjusted net income of US$9.02 billion in the first six months of 2007. AMERICAN INTERNATIONAL: Maurice Greenberg Discloses 10.36% Stake ---------------------------------------------------------------- Maurice R. Greenberg, Edward E. Matthews, Starr International Company, Inc., C. V. Starr & Co., Inc., Universal Foundation, Inc., The Maurice R. and Corinne P. Greenberg Family Foundation, Inc., Maurice R. and Corinne P. Greenberg Joint Tenancy Company, LLC, and C. V. Starr & Co., Inc. Trust, disclosed in a Securities and Exchange Commission filing that they may be deemed to beneficially own in the aggregate 278,446,354 shares of American International Group, Inc.'s common stock, representing roughly 10.36% of the 2,688,833,724 outstanding common stock as of July 31, 2008. Based in New York City, American International Group Inc. -- http://www.aig.com/-- (NYSE: AIG) is an international insurance and financial services organization, with operations in more than 130 countries and jurisdictions. The company is engaged through subsidiaries in General Insurance, Life Insurance & Retirement Services, Financial Services and Asset Management. The company's British headquarters are located on Fenchurch Street in London, continental Europe operations are based in La Defense, Paris, and its Asian HQ is in Hong Kong. AIG owns Ocean Finance, a United Kingdom based company providing home owner loans, mortgages and remortgages. AIG operates in the UK with the brands AIG UK, AIG Life and AIG Direct. It has about 3,000 employees, and sponsors the Manchester United football club. In response to redemption demands, AIG Life (UK) suspended redemptions of its AIG Premier Bond money market fund on Sept. 19, 2008, in order to provide an orderly withdrawal of assets. The Federal Reserve Bank of New York has extended to AIG a revolving credit facility up to US$85 billion. AIG's borrowings under the revolving credit facility will bear interest, for each day, at a rate per annum equal to three-month Libor plus 8.50%. The revolving credit facility will have a 24-month term and will be secured by a pledge of assets of AIG and various subsidiaries. The revolving credit facility will contain affirmative and negative covenants, including a covenant to pay down the facility with the proceeds of asset sales. The summary of terms also provides for a 79.9% equity interest in AIG. The corporate approvals and formalities necessary to create this equity interest will depend upon its form. In a statement, the company said "AIG is a solid company with over US$1 trillion in assets and substantial equity, but it has been recently experiencing serious liquidity issues." Standard & Poor's Ratings Services revised the CreditWatch status of most of its ratings on the AIG group of companies -- including its 'A-' long-term counterparty credit ratings on American International Group Inc. and the 'A+' counterparty credit and financial strength ratings on most of AIG's insurance operating subsidiaries -- to CreditWatch developing from CreditWatch negative. S&P raised its ratings on preferred stock of International Lease Finance Corp. (ILFC; A-/Watch Dev/A-1) to 'BBB' from 'B', and revised the CreditWatch implications to developing from negative. All other ILFC ratings remain on CreditWatch with developing implications. Fitch Ratings revised its Rating Watch on American International Group, Inc. to Evolving from Negative. Fitch viewed this transaction as a favorable development that alleviates significant near-term liquidity concerns. The Troubled Company Reporter reported on Sept. 19, 2008, that that Edward Liddy replaced Robert Willumstad as AIG's CEO. * * * In a U.S. Securities and Exchange Commission filing dated Aug. 6, 2008, AIG reported a net loss for the second quarter of 2008 of US$5.36 billion compared to 2007 second quarter net income of US$4.28 billion. Second quarter 2008 adjusted net loss was US$1.32 billion, compared to adjusted net income of US$4.63 billion for the second quarter of 2007. The continuation of the weak U.S. housing market and disruption in the credit markets, as well as global equity market volatility, had a substantial adverse effect on AIG's results in the second quarter. Net loss for the first six months of 2008 was US$13.16 billion, compared to net income of US$8.41 billion in the first six months of 2007. Adjusted net loss for the first six months of 2008 was US$4.88 billion, compared to adjusted net income of US$9.02 billion in the first six months of 2007. ARTISAN MIDLANDS: Appoints Andrew Appleyard as Administrator ------------------------------------------------------------ Andrew Appleyard of Tenon Recovery was appointed administrator of Artisan Midlands Ltd. (Company Number 04306788) on Oct. 1, 2008. The company can be reached at: Artisan Midlands Ltd. Claymore Tame Valley Industrial Estate Tamworth Staffordshire B77 5DQ England ASCALADE COMMS: Reports Status Update on Default Announcement ------------------------------------------------------------- Ascalade Communications, Inc., has provided an update by reporting issuers in compliance with financial statement filing requirements in accordance with Ontario Securities Commission Policy 57-603 Defaults. In accordance with the OSC Policy, the company confirms that there is no (i) material change to the information set out in its initial default announcement filed pursuant to the OSC Policy, (ii) failure by the Company to adhere to the "Alternative Information Guidelines" set out in the OSC Policy with respect to the financial statement filing default, and (iii) other material information concerning the affairs of the Company that has not been generally disclosed. Any recovery in the Companies' Creditors Arrangement Act proceedings for creditors and other stakeholders of the company, including shareholders, is uncertain and is highly dependent upon a number of factors, including the recovery from the sale of the factory, equipment and inventory in the PRC and the outcome of the Scheme in Hong Kong. About Ascalade Communications Inc. Based in Richmond, British Columbia, Ascalade Communications Inc. (TSE:ACG) -- http://www.ascalade.com/-- is an innovative product company that designs, develops and manufactures digital wireless and communication products. The company deliver products by offering its partners and customers complete vertical integration, from product design and development to final production. The company's products include digital cordless phones, Voice over Internet Protocol phones, digital wireless baby monitors and digital wireless conference phones. Ascalade products have been distributed in more than 35 countries and under 80 regional brands. Ascalade also has facilities in Qingyuan, China, Hong Kong and a sales office in Hertfordshire, United Kingdom. On April 29, 2008, Jervis Rodrigues, senior vice-president of Deloitte & Touche Inc., filed separate petitions for protection under Chapter 15 of the U.S. Bankruptcy Code on behalf of Ascalade Communications Inc. and its debtor-affiliate (Bankr. N.D. Ill. Case Nos. 08-10612 and 08-10616). Jeffrey G. Close, Esq. at Chapman and Cutler LLP represents the Petitioner in the Chapter 15 case. Ascalade's financial condition as of September 2007 showed total assets of US$99,630,000 and total debts of US$40,410,000. CESTRUM CONSERVATORIES: Taps Joint Administrators from PwC ---------------------------------------------------------- David Thornhill and Ian Green of PricewaterhouseCoopers LLP were appointed Oct. 2, 2008, joint administrators of: -- Cestrum Conservatories Ltd. (Company Number 04944406); -- K2 Conservatory Systems Ltd. (Company Number 03900046); -- Burnden Holdings (UK) Ltd. (Company Number 03900046); and The companies can be reached at: Burnden Holdings (UK) Ltd. Burnden Works Burnden Road Bolton Lancashire BL3 2RB England LUXFER HOLDINGS: Moody's Changes Outlook from Stable to Negative ---------------------------------------------------------------- Moody's Investors Service has changed the outlook on the ratings of Luxfer Holdings to negative from stable. It also affirmed the company's B2 corporate family rating and the Caa1 rating on the GBP 71.8 million senior unsecured floating rate notes. The change in outlook reflects Moody's perception of uncertainty related to the refinancing of Luxfer's GBP45 million asset-based secured bank facility, which matures in April 2009. Although Luxfer has started the refinancing process and expects to complete this by the end of 2008, current extraordinary conditions in global financial markets and the strained position of many banks mean that there is greater uncertainty than would be the case under normal market conditions. On the positive side, Luxfer appears to have maintained good operating performance in difficult markets in the first half of 2008, as evidenced by its financial results which saw revenue of GBP130 million (up 18% from H1 2007) and stable margins despite higher input costs. This steady performance -- together with the asset-based secured nature of any new facility, which is attractive to lenders - should help facilitate the refinancing process. At the same time, the same features in the existing facility may allow existing ABL lenders to terminate and suffer relatively low loss, even if the termination were to cause Luxfer to default. At June 30, 2008, the bank facility was drawn by GBP20.6 million, down from GBP24.7 million on December 31, 2008. As the facility is effectively part of Luxfer's capital structure, failure to refinance would likely lead to a default unless alternate liquidity became available. In this regard, Luxfer reported only GBP2.2 million cash at June 30, 2008, and it does not have significant assets that could be liquidated quickly. Nor does an equity injection from existing shareholders to avoid default seem likely, given that 87% of these are creditors who received equity as part of a capital reorganization in 2007 (the balance 13% being held by management). Should Luxfer successfully refinance, Moody's expects that the revised terms would be more onerous than those in the existing facility. At the very least, Moody's expects that the company's interest costs will increase. Despite leverage not being particularly high - Debt/Ebitda was reported at 3.4x at June 30, 2008, Luxfer already has limited financial flexibility due to its relatively small size and the need to maintain investment and associated capital expenditure. Luxfer has maintained its financial performance to date but may face greater resistance to passing on cost pressures, although these may be abating from earlier highs. Medical and aerospace/defense customers may remain reasonably robust, but the automotive industry is generally under considerable margin pressure. Hence the prospects for material near-term debt reduction appear low. In that context, Moody's may maintain the negative outlook even if the refinancing is successful. Moody's would take further downward rating action should Luxfer's Q3 results (due in November) be below expectations; if progress on refinancing were to fall behind expectations; or if the terms of any new facility were to be more onerous than current expectations. Headquartered in Manchester, England, Luxfer specializes in the design and manufacture of high-pressure gas cylinders, and aluminum, zirconium, and magnesium based engineering products for use in the aerospace, automotive, medical and general engineering industries. Revenue for the year ending December 2007 was GBP213 million. ORIENTAL FOOD: Calls in Joint Administrators from KPMG ------------------------------------------------------ Paul Nicholas Dumbell, Paul Andrew Flint and Brian Green of KPMG LLP were appointed joint administrators of Oriental Food Service Ltd. (Company Number 04459343) on Sept. 26, 2008. The company can be reached at: Oriental Food Service Ltd. Unit 2 Revie Road Industrial Estate Leeds LS11 8JG England QUEBECOR WORLD: Posts US$11.6MM Net Loss in Period Ended August 30 ---------------------------------------------------------------- Quebecor World (USA), Inc., et al. Combined Balance Sheet As of August 30, 2008 ASSETS Current Assets: Cash and Cash equivalents US$152,400,000 Accounts receivables 531,900,000 Trade and receivables 51,600,000 Inventories 151,700,000 Future income taxes and tax receivable 18,700,000 Prepaid Expenses 30,300,000 ------------- Total current expenses 936,600,000 Property, plant and equipment 1,165,000,000 Goodwill 336,400,000 Restricted cash 32,300,000 Future income taxes 900,000 Other assets 302,800,000 -------------- TOTAL ASSETS US$2,774,000,000 ============== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities not subject to compromise: Bank indebtedness US$16,000,000 Trade payables and accrued liabilities 246,900,000 Payables to related parties 3,100,000 Income and other taxes payable 15,000,000 Current portion long-term debt 491,800,000 Combined Statement of Operations 2,866,200,000 ------------- Total current liabilities 3,639,000,000 Other liabilities not subject to compromise: Long-term debt 7,400,000 Other liabilities 132,200,000 Future income taxes 113,100,000 Shareholders equity: Capital stock 1,031,200,000 Contributed surplus 470,000,000 Retained earnings (2,619,800,000) Accumulated other comprehensive loss (900,000) -------------- Total Equity (1,117,700,000) -------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY US$2,774,000,000 ============== Quebecor World (USA), Inc., et al. Combined Statement of Operations For the month ended August 30, 2008 Operating Revenues US$244,300,000 Operating expenses: Cost of sales 200,600,000 Selling, general and administrative 13,500,000 Depreciation and amortization 14,000,000 ----------- Total operating expenses 228,100,000 ----------- Operating income 16,200,000 Financial expenses 25,200,000 Reorganization items 4,200,000 Income taxes (1,600,000) ---------- 27,800,000 ----------- Net loss and comprehensive loss (US$11,600,000) =========== Quebecor World (USA), Inc., et al. Combined Statement of Cash Flows For Month Ended August 30, 2008 Cash flows from operating activities: Net loss (US$11,600,000) Adjustments for: Depreciation of property, plant and equipment 14,000,000 Future income taxes (1,600,000) Amortization of other assets 700,000 Other (800,000) ----------- 700,000 ----------- Net changes in non-cash balances to operations: Accounts receivable (27,800,000) Inventories (11,900,000) Trade payables and accrued liabilities 30,400,000 Other current assets and liabilities 15,700,000 Other non-current assets and liabilities (24,300,000) ---------- 5,900,000 ---------- Cash flows provided by (used in) operating activities 6,600,000 ---------- Cash flows from financing activities: Net change in bank indebtedness 2,600,000 Repayment of long-term debt obligations under capital lease 1,000,000 ---------- Cash flows provided by (used in) operating activities 3,600,000 ---------- Cash flows from investing activities: Additions to property, plant and equipment (4,300,000) Restricted cash related to insolvency proceedings 0 ---------- Cash flows provided by (used in) operating activities (4,300,000) ---------- Net changes in cash and cash equivalents 5,900,000 Cash and cash equivalents, beginning of period 146,500,000 ------------ Cash and cash equivalents, end of period US$152,400,000 ============ About Quebecor World Based in Montreal, Quebec, Quebecor World Inc. (TSX: IQW) (NYSE: IQW) -- http://www.quebecorworldinc.com/-- provides market solutions, including marketing and advertising activities, well as print solutions to retailers, branded goods companies, catalogers and to publishers of magazines, books and other printed media. It has 127 printing and related facilities located in North America, Europe, Latin America and Asia. In the United States, it has 82 facilities in 30 states, and is engaged in the printing of books, magazines, directories, retail inserts, catalogs and direct mail. The company has operations in Mexico, Brazil, Colombia, Chile, Peru, Argentina and the British Virgin Islands. Ernst & Young, Inc., the monitor of Quebecor World Inc., and its affiliates' reorganization proceedings under the Canadian Companies' Creditors Arrangement Act, filed a petition under Chapter 15 of the Bankruptcy Code before the U.S. Bankruptcy Court for the Southern District of New York on September 30, 2008, on behalf of QWI (Bankr. S.D.N.Y. Case No. 08-13814). The chapter 15 case is before Judge James M. Peck. Kenneth P. Coleman, Esq., at Allen & Overy LLP, in New York, serves as counsel to the chapter 15 petitioner. QWI and certain of its subsidiaries commenced the CCAA proceedings before the Quebec Superior Court (Commercial Division) on January 20, 2008. The following day, 53 of QWI's U.S. subsidiaries, including Quebecor World (USA), Inc., filed petitions under Chapter 11 of the U.S. Bankruptcy Code. The Honorable Justice Robert Mongeon oversees the CCAA case. Francois-David Pare, Esq., at Ogilvy Renault, LLP, represents the Company in the CCAA case. Ernst & Young Inc. was appointed as Monitor. Quebecor World (USA) Inc., its U.S. subsidiary, along with other U.S. affiliates, filed for chapter 11 bankruptcy before the U.S. Bankruptcy Court for the Southern District of New York (Lead Case No. 08-10152). Anthony D. Boccanfuso, Esq., at Arnold & Porter LLP, represents the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors is represented by Akin Gump Strauss Hauer & Feld LLP. Based in Corby, Northamptonshire, Quebecor World PLC -- http://www.quebecorworldplc.com/-- is the U.K. subsidiary of Quebecor World Inc. that specializes in web offset magazines, catalogues and specialty print products for marketing and advertising campaigns. The company employs around 290 people. Quebecor PLC was placed into administration with Ian Best and David Duggins of Ernst & Young LLP appointed as joint administrators effective Jan. 28, 2008. QWI is the only entity involved in the CCAA proceedings that is not a Debtor in the Chapter 11 Cases. As of June 30, 2008, Quebecor World's unaudited consolidated balance sheet showed total assets of US$3,412,100,000 total liabilities of US$4,326,500,000 preferred shares of US$62,000,000 and total shareholders' deficit of US$976,400,000. The Hon. Robert Mongeon of the Quebec Superior Court has extended until Dec. 14, 2008, the stay under the Canadian Companies' Creditors Arrangement Act. (Quebecor World Bankruptcy News, Issue No. 28; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) ROSEBYS GROUP: Closes 32 Retail Outlets; 173 Jobs Affected ---------------------------------------------------------- The Joint Administrators of the Rosebys group of companies confirmed that they have closed a further 32 of the home textile retail chain's outlets, making 173 people redundant. Howard Smith, Joint Administrator and KPMG Restructuring Associate Partner, said: "We have now closed a total of 73 of the poorer performing stores, in order to maximize the chance of a going concern sale. "The deadline for indicative offers expired last Friday and we have received offers from a number of interested parties that relate to a going concern sale. We are hopeful of issuing a sale contract shortly and the business will continue to trade during that process." Outlets closed during the week commencing Monday, Oct. 13, with the accompanying number of redundancies: * Perry Barr (8) * Doncaster (6) * Worcester (6) * Letchworth (5) * Colchester (6) * Warrington (6) * Wandsworth (7) * Glenrothes (7) * Stockport (5) * Chelmsley Wood (5) * Uxbridge (6) * East Kilbride (6) * Livingston (5) * Gateshead (7) * Rotherham (5) * Birkenhead (5) * Solihull (5) * Margate (4) * Wigan (5) * Stockton (4) * Pontefract (7) * Clydebank (6) * Walsall (5) * Northampton (5) * Nottingham (5) * Southport (5) * Sheffield (5) * Cardiff (5) * Swansea (6) * Portsmouth (6) * Hull (6) * Stechford (9) As reported in the TCR-Europe on Oct. 7, 2008, Rosebys group of companies had received 45 expressions of interest. About KPMG LLP (UK) KPMG LLP (UK) -- http://kpmg.co.uk/-- provides professional services including audit, tax, financial and risk advisory. KPMG in the UK has over 10,000 partners and staff working in 22 offices and is part of a strong global network of members firms. As part of KPMG Europe it has merged with its German and Swiss firms, making it the largest integrated accounting firm in Europe. About Rosebys Based in Yorkshire, Rosebys is a textiles retailer. The company has an annual turnover of GBP100 million. It employs 2,000 staff. SCOTTISH RE: S&P Retains Ratings Under Negative CreditWatch ----------------------------------------------------------- Standard & Poor's Ratings Services said that its ratings on Scottish Re Group Ltd. (CCC-/Watch Neg/--; Scottish Re) and Scottish Re's core operating companies--Scottish Annuity & Life Insurance Co. (Cayman) Ltd., Scottish Re (U.S.) Inc., and Scottish Re Life Corp. (CCC+/Watch Neg/--)--remain on CreditWatch with negative implications. The ratings on all these companies' dependent unwrapped securitized deals also remain on CreditWatch negative. Standard & Poor's placed these ratings on CreditWatch on Jan. 31, 2008, and subsequently lowered them to the current level because of greater-than-expected deterioration in the group's already severely limited financial flexibility and liquidity. This primarily resulted from higher-than-expected asset impairments leading to additional collateral posting requirements. "It is our opinion that the only strong option available to the company for preserving longer-term solvency is the sale of its North American segment, which constitutes the bulk of its remaining operations," noted Standard & Poor's credit analyst Robert A. Hafner. SEA CONTAINER: To Forgive US$3 Million in Intercompany Receivables ------------------------------------------------------------------ The United States Bankruptcy Court for the District of Delaware granted the request of Sea Containers Ltd. to forgive US$3,000,000 in intercompany receivables owed by subsidiary Charleston Marine Containers, Inc. The release was sought in connection with the sale of Charleston to Gichner Systems Group, Inc. For the avoidance of doubt, Judge Carey said, nothing in the order will be deemed to result in the forgiveness of any obligations owing from Charleston to any party, including SCL, Sea Containers America, Inc., or Sea Containers Treasury Limited. Judge Carey further ruled that all rights and defenses are reserved with respect to (i) the Services Agreement, (ii) the appropriate allocation of costs, intercompany or other obligations, and (iii) the appropriate allocation of proceeds realized from the sale of the Charleston stock. Prior to the Court's ruling, Laura Barlow, the Debtors' interim chief financial officer and chief restructuring officer, submitted to the Court a declaration supporting the request. Ms. Barlow said that based on her knowledge of the contemplated transactions, she believes that it is in the best interests of the bankruptcy estates to forgive the Intercompany Receivable to facilitate the sale of the Charleston stock, and as a result, would enable the estates to avoid approximately US$2,300,000 in potential liability to Pension Benefit Guaranty Corporation. "Forgiving the Intercompany Receivable also advances the Debtors' overall strategy in these chapter 11 cases and the Plan [of Reorganization], which is the winddown and sale of non-core assets and the possible repatriation of proceeds to SCL for distribution to its creditors," Ms. Barlow told the Court. Gichner System's Statement Gichner Systems Group, Inc., the leading supplier of tactical military shelters to the US Armed Forces, announced that it has cquired Charleston Marine Containers, Inc. ("CMCI"), located in Charleston, South Carolina. CMCI is the leading domestic manufacturer of intermodal, modular intermodal, and specialty container systems for the US Armed Forces. CMCI's products are in use worldwide and include numerous patented containers and container systems including the Quadcon, Tricon, Bicon, Tricold(R) and Quadcold TM containers. The operations of CMCI are to remain based in Charleston, and the company will continue to operate and trade using the CMCI name. Altus Capital Partners LLC and Dunrath Capital, Inc., along with Gichner management and other investors, provided the equity for the acquisition. Altus Capital and Dunrath Capital, as co-equity investors with Gichner management, acquired Gichner in August 2007. Commenting on the acquisition, Thomas E. Mills IV, Gichner President and CEO, stated, "The acquisition of CMCI is a key element of Gichner's growth plan. The employees and operations in Charleston are impressive. CMCI provides new products and new markets for Gichner, in addition to over 240,000 square feet of additional manufacturing capacity, bringing Gichner's total manufacturing capacity to over 600,000 square feet. With the addition of CMCI, Gichner's total annual revenues are approaching US$100 million with funded contract backlog of approximately US$70 million. Together with the additional talent of the CMCI employees, Gichner and CMCI should continue to increase sales in both businesses." Mr. Mills continued, "The vast majority of the acquisition is being funded with equity, which should provide Gichner and CMCI with the financing required to generate increased sales. CMCI's customers will continue to enjoy high-quality products delivered in a timely manner and on schedule by CMCI's highly- skilled and dedicated Charleston-based production and management teams. Customers should continue to contact their appropriate CMCI representative." Elizabeth Burgess, a senior partner of Altus Capital Partners, Inc., said, "This acquisition demonstrates Altus Capital's commitment to helping Gichner and our other portfolio companies make strategic acquisitions that expand market share and create operating efficiencies, even during difficult financing periods. Altus Capital helped both to initiate this important transaction as well as to provide the majority of the capital required." Steve Beitler, senior managing director of Dunrath Capital and a retired Army officer, said, "The combination of Gichner and CMCI provides significant potential for innovation in the field of military containerization. We expect many new products to evolve as a result of the combined research and engineering talent of the newly merged companies." About Gichner Systems Group Gichner Systems Group is a leader in the development of solutions for the transport and protection of mobile electronic systems. Gichner products protect military personnel and electronic and other systems from the environment during transport and operation in some of the world's harshest environments. Gichner Shelter Systems provides turn-key systems that are "rack ready" for the installation of its customers' electronic systems and service, maintenance, reset and repair of existing shelter systems. The Commercial and Emergency Mobile Systems division designs and manufactures specialized commercial products including high end truck bodies, fire safety trainers, mobile command posts and first responder systems for use by commercial, municipal and homeland security customers. For more information about Gichner Systems Group, call us at 717-246-5453 or visit us at www.gichner.us About Altus Capital Partners LLC Based in Westport, CT, Altus Capital Partners -- http://www.altuscapitalpartners.com-- is a private equity firm that creates value by purchasing and growing profitable small to middle market manufacturing businesses with unrealized potential. Altus is led by a proven, seasoned deal-making team of high integrity that invests alongside management to help seize current growth opportunities through due diligence and leadership in long- term strategic thinking. With over 50 years of investment experience, the Altus team utilizes its extensive knowledge of the private equity cycle to optimize company value through structured buyouts, recapitalizations, consolidations and divestitures. Altus' investment strategy builds businesses, fosters company loyalty and provides jobs. About Dunrath Capital, Inc. Based in Chicago, Dunrath Capital is a private equity firm that leverages the partnership's collective experiences in private equity investing, operations, government and entrepreneurship in combination with a pro-active, research-based investment strategy to create value for its portfolio companies and investors. While the Dunrath partnership has investment experience and a portfolio ranging from commercializations to leveraged buyouts, the firm has a focus on growth stage or earlier companies. The firm's current targeted investment sectors include safety, security, and defense. On the Net: http://www.dunrath.com Based in Hamilton, Bermuda, Sea Containers Ltd. -- http://www.seacontainers.com/-- provides passenger and freight transport and marine container leasing. Registered in Bermuda, the company has regional operating offices in London, Genoa, New York, Rio de Janeiro, Sydney, and Singapore. The company is owned almost entirely by United States shareholders and its primary listing is on the New York Stock Exchange (SCRA and SCRB) since 1974. On Oct. 3, the company's common shares and senior notes were suspended from trading on the NYSE and NYSE Arca after the company's failure to file its 2005 annual report on Form 10-K and its quarterly reports on Form 10-Q during 2006 with the U.S. Securities and Exchange Commission. Through its GNER subsidiary, Sea Containers Passenger Transport operates Britain's fastest railway, the Great North Eastern Railway, linking England and Scotland. It also conducts ferry operations, serving Finland and Estonia as well as a commuter service between New York and New Jersey in the U.S. Sea Containers Ltd. and two subsidiaries filed for chapter 11 protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156). Edmon L. Morton, Esq., Edwin J. Harron, Esq., Robert S. Brady, Esq., Sean Matthew Beach, Esq., and Sean T. Greecher, Esq., at Young, Conaway, Stargatt & Taylor, represent the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors and the Financial Members Sub-Committee of the Official Committee of Unsecured Creditors of Sea Containers Ltd. is represented by William H. Sudell, Jr., Esq., and Thomas F. Driscoll, Esq., at Morris, Nichols, Arsht & Tunnell LLP. Sea Containers Services, Ltd.'s Official Committee of Unsecured Creditors is represented by attorneys at Willkie Farr & Gallagher LLP. In its schedules filed with the Court, Sea Containers disclosed total assets of US$62,400,718 and total liabilities of US$1,545,384,083. (Sea Containers Bankruptcy News, Issue No. 53; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) TP ATHERSTONE: Brings in Joint Administrators from KPMG ------------------------------------------------------- Myles Antony Halley and Richard James Philpott of KPMG LLP were appointed Oct. 3, 2008, joint administrators of: -- TP Atherstone Ltd. (Company Number 04351900); -- PRM Newage Ltd. (Company Number 05924495); -- Commatech Gears (Atherstone) Ltd. (Company Number 000991484); -- Commatech (Braye) Ltd. (Company Number 02774858); -- Commatech (Holdings) Ltd. (Company Number 05040530); and -- Commatech (Northampton) Ltd. (Company Number 01895665). The companies can be reached at: Commatech (Northampton) Ltd. 111 Edmund Street Birmingham B3 2HJ England TWO-WHEELS GMBH: Claims Registration Period Ends Oct. 22 -------------------------------------------------------- Creditors of Two-Wheels GmbH have until Oct. 22, 2008, to register their claims with court-appointed insolvency manager Stephan Michels. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Nov. 12, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court Muenster Meeting Hall 101 B First Floor Gerichtsstr. 2-6 48149 Muenster Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Stephan Michels Hafenweg 46- 48 48155 Muenster Germany Tel: 0251/609652-0 Fax: +4925160965229 The District Court of Muenster opened bankruptcy proceedings against Two-Wheels GmbH on Aug. 12, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Two-Wheels GmbH Attn: Carsten Wagner, Manager Langeland 1 48308 Senden Germany VELLY MITTE: Claims Registration Period Ends October 24 ------------------------------------------------------- Creditors of Velly Mitte GmbH have until Oct. 24, 2008, to register their claims with court-appointed insolvency manager Frank Raff. Creditors and other interested parties are encouraged to attend the meeting at 8:00 a.m. on Nov. 14, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Aalen Hall 0.08 Ground Floor Stuttgarter Strasse 7 73430 Aalen Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Frank Raff Heilbronner Strasse 86 70191 Stuttgart Germany Tel: 0711/259729-0 Fax: 0711/259729-999 E-mail: info@hr-stuttgart.de Web site: www.hr-stuttgart.de The District Court of Aalen opened bankruptcy proceedings against Velly Mitte GmbH on Sept. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Velly Mitte GmbH Sauerbachstr. 83 73434 Aalen Germany VILLA KARLSBAD: Claims Registration Period Ends Oct. 24 ------------------------------------------------------- Creditors of Villa Karlsbad GmbH have until Oct. 24, 2008, to register their claims with court-appointed insolvency manager Dr. Helmut Eisner. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Dec. 4, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Crailsheim Hall 113 First Floor Schillerstrasse 1 74564 Crailsheim Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Helmut Eisner Josef-Schmitt-Strasse 10 97922 Lauda-Koenigshofen Germany Tel: 09343/627590 Fax 09343/3833 The District Court of Crailsheim opened bankruptcy proceedings against Villa Karlsbad GmbH on Sept. 22, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Villa Karlsbad GmbH Beethovenstrasse 6 74736 Hardheim Germany Attn: Hans-Dietrich Heindl, Manager Edelfinger Str. 6 97980 Bad Mergentheim Germany * S&P Junks Ratings on 27 Lehman-Exposed European CDO Transactions ------------------------------------------------------------------ Standard & Poor's Ratings Services has lowered and kept on CreditWatch with negative implications its ratings on 27 tranches from 21 synthetic collateralized debt obligation (CDO) transactions. The ratings on six tranches in one transaction have been lowered and removed from CreditWatch negative. In addition, S&P kept the ratings on 12 single-tranche synthetic CDO deals on CreditWatch negative. At the same time, S&P has withdrawn some ratings for different reasons across five separate deals, either because of lack of information, or note redemption with no loss to noteholders, or because of a direct ratings link to Lehman Brothers Holding Inc. entities that are no longer rated. A total of 39 deals are affected by these rating actions. The downgrades follow S&P's review of Lehman-related synthetic CDO transactions, where Lehman acts as either the credit support provider or guarantor to various Lehman-related entities that act as swap counterparty to the affected transactions. S&P believes that those notes on which it has lowered its ratings will not have enough funds to pay the principal balance and accrued interest on liquidation of the relevant transaction. The tranches with ratings remaining on CreditWatch negative reflect S&P's opinion that the notes will be fully paid on the liquidation of the transaction. These notes benefited from both subordinated swap termination payments and the requirement that Lehman post collateral one period in advance on the coupon owed to the notes. Furthermore, S&P has not taken rating actions on tranches where the proceeds from the liquidation of charged assets and the provision for overcollateralization is not expected to be lower than the principal of the notes. Some transactions remain on CreditWatch negative while S&P confirms the current status with the trustee. These transactions have features that differ from plain vanilla synthetic CDOs. Depending on the information received from the trustee, it may take further rating actions. S&P does not rule out the withdrawal of ratings if it does not receive the information required to maintain the current ratings. Once S&P receives final payment reports, if the notes on CreditWatch negative experience a loss, it will lower them to 'D'. However, if the notes are paid back in full, S&P will withdraw the ratings. Ratings lowered and remaining on CreditWatch Negative: Jupiter Quartz Finance PLC -- EUR100 million and US$20 million credit-linked synthetic portfolio series 2004-2 AAA CCC-/Watch Neg AAA/Watch Neg A CCC-/Watch Neg AAA/Watch Neg B CCC-/Watch Neg AA/Watch Neg Jupiter Quartz Finance PLC -- EUR80 million credit-linked synthetic portfolio notes series 2004-01 A CCC-/Watch Neg AA+/Watch Neg B CCC-/Watch Neg AA+/Watch Neg Phoenix 2002-2 Ltd. -- EUR239 million credit-linked floating-rate notes A CCC-/Watch Neg AAA/Watch Neg B CCC-/Watch Neg AA+/Watch Neg C CCC-/Watch Neg A/Watch Neg D CCC-/Watch Neg BB+/Watch Neg Saphir Finance PLC -- EUR20 million credit-linked synthetic portfolio notes series 2004-2 B CCC-/Watch Neg AA/Watch Neg Saphir Finance PLC -- EUR15 million credit-linked synthetic portfolio CDO notes (Richmond) series 2004-5 A CCC-/Watch Neg AA/Watch Neg Saphir Finance PLC -- US$5 million Class A1 credit-linked synthetic portfolio notes series 2004-9 (Richmond) A1 CCC-/Watch Neg AA/Watch Neg Saphir Finance PLC -- EUR7 million Class A2 credit-linked synthetic portfolio notes series 2004-9 (Richmond) A2 CCC-/Watch Neg AA/Watch Neg Saphir Finance PLC -- EUR45.5 million credit-linked synthetic portfolio notes (Lennox II) series 2005-3 Class A A CCC-/Watch Neg AA/Watch Neg Saphir Finance PLC -- EUR40 million variable-rate credit-linked synthetic portfolio notes series 2005-7 (Tulip Lane) CCC-/Watch Neg AA/Watch Neg Saphir Finance PLC -- EUR15 million variable-rate credit-linked synthetic portfolio notes series 2005-7 Class A2 (Tulip Lane) A2 CCC-/Watch Neg AA/Watch Neg Saphir Finance PLC -- US$25 million class A2 credit-linked synthetic portfolio notes series 2005-10 A2 CCC-/Watch Neg AA/Watch Neg Saphir Finance PLC -- EUR15 million class A1 credit-linked synthetic portfolio premium notes series 2006-2 A1 CCC-/Watch Neg A/Watch Neg Saphir Finance PLC -- US$10 million class A2 credit-linked synthetic portfolio vantage point notes series 2006-2 A2 CCC-/Watch Neg BBB+/Watch Neg Saphir Finance PLC -- EUR10 million Class A1 Oak Harbour credit-linked synthetic portfolio notes with a reserve coupon linked to the global large cap ethical index series 2006-3 A1 CCC-p/Watch Neg Di ApA+i/Watch Neg CCC-p/Watch Neg NRi CCC-p/Watch Neg Di Saphir Finance PLC -- EUR20 million Class A3 Oak Harbour credit-linked synthetic portfolio notes with a reserve coupon linked to the global large cap ethical index series 2006-3 A3 CCC-p/Watch Neg Di BBB+pA+i/Watch Neg CCC-p/Watch Neg NRi CCC-p/Watch Neg Di Saphir Finance PLC -- EUR15 million Class A4 Oak Harbour credit-linked synthetic portfolio notes with a reserve coupon linked to the global large cap ethical index series 2006-3 A4 Ap/Watch Neg Di ApAi/Watch Neg Ap/Watch Neg NRi Ap/Watch Neg Di Saphir Finance PLC -- EUR25 million Spring Sand 10 years non-call 5 years step-up CMS credit-linked synthetic portfolio notes series 2006-6 CCC-/Watch Neg AA/Watch Neg Saphir Finance PLC -- EUR15 million inflation and credit-linked synthetic variable coupon notes series 2007-9 CCC-/Watch Neg AA/Watch Neg Topaz Finance Ltd. -- EUR50 million Tulip Lane CDO of CDO variable-rate credit- linked synthetic portfolio notes series 2005-1 CCC-/Watch Neg AA/Watch Neg Topaz Finance Ltd. -- EUR15.94 million Tulip Lane CDO of CDO variable-rate credit- linked synthetic portfolio notes series 2005-2 CCC-/Watch Neg BBB-/Watch Neg Topaz Finance Ltd. -- EUR10 million Artemis CDO of CDO Credit-Linked Synthetic Portfolio notes series 2008-1 CCC-/Watch Neg AAA/Watch Neg Ratings lowered and removed from CreditWatch Negative: Ruby Finance PLC -- EUR84.5 million class A-1 swap agreement and EUR67.5 million credit-linked synthetic portfolio notes series 2007-3 A-1 CC AAAsrp/Watch Neg A-2 CC AAA/Watch Neg B CC AA/Watch Neg C CC A/Watch Neg D CC BBB/Watch Neg E CC BB/Watch Neg Ratings remaining on CreditWatch Negative: Saphir Finance PLC -- US$5 million class B1 credit-linked synthetic portfolio premium notes series 2006-2 B A/Watch Neg Saphir Finance PLC -- EUR24.8 million SPIRIT Class A Capital Protected CPPI notes series 2006-8 A AAAp/Watch Neg Saphir Finance PLC -- EUR25 million SPIRIT Class B Capital Protected CPPI notes series 2006-8 B AAAp/Watch Neg Saphir Finance PLC -- EUR15 million SPIRIT Class C Capital Protected CPPI notes series 2006-8 C AAApNRi/Watch Neg Saphir Finance PLC -- EUR40 million Spring Sand 10 years non-call 5 years step-up credit-linked synthetic portfolio notes series 2006-10 A-/Watch Neg Saphir Finance PLC -- EUR50 million credit-linked synthetic portfolio notes series 2007-1 A+/Watch Neg Saphir Finance PLC -- EUR120 million LIBRA Capital protected CPPI notes series 2007-2 AAApNRi/Watch Neg Saphir Finance PLC -- EUR16.5 million SPIRIT Capital Protected CPPI notes series 2007-4 AAApNRi/Watch Neg Saphir Finance PLC -- EUR25 million SPIRIT capital protected CPPI notes series 2007-6 AAApNRi/Watch Neg Saphir Finance PLC -- EUR254.5 million floating-rate notes series 2008-2 A/Watch Neg Saphir Finance PLC -- EUR1.28 billion floating-rate notes series 2008-4 A/Watch Neg Saphir Finance PLC -- EUR70.668 million floating-rate notes series 2008-5 A/Watch Neg Ratings withdrawn due to lack of information: Saphir Finance PLC -- EUR20 million long/short leveraged super senior tranche notes series 2006-1 NR BB/Watch Neg Saphir Finance PLC -- EUR77 million dynamic participation investment return obligation notes series 2006-11 (Antara Capital) A NR BBB/Watch Neg Ratings withrawn due to redemption: Saphir Finance PLC -- EUR121.135 million floating-rate notes series 2008-3 A NR A/Watch Neg Rating withdrawn due to direct ratings link to Lehman Brothers Holding Inc. Lehman Brothers Bankhaus AG -- EUR50 million Chablis credit-linked synthetic portfolio schuldschein NR D Saphir Finance PLC -- EUR10 million credit-linked synthetic portfolio notes (Lennox II) series 2005-3 Class C C NR D * KPMG Notes Effects of Market Turmoil on UK Transport Sector ------------------------------------------------------------- Dr. Ashley Steel, Global Chair for Transport and Infrastructure at KPMG, comments on the effects of the market turmoil on the transport sector: "The aviation sector is already the hardest hit. Airlines have been struggling for a while with high oil prices and falling demand. A global economic downturn will makes things even more difficult and intensify the need for consolidation in the airline sector. However, the sector is facing a huge dilemma. On the one hand, more and more airlines realize they must merge in order to survive. On the other, they have to think about whether an economic downturn is a good time to do so given the distraction it will create. But there are things that all airlines can and must do now, cut back on capacity wherever possible, force through cost reduction as quickly as possible and manage their cash effectively. Low- cost carriers are at an advantage as their business model is better positioned to manage costs. They just need to cut back on capacity which a lot of them have already done. Traditional carriers are already moving closer to the low-cost model, but they will need to do so even more rapidly. In the long run the current downturn will squeeze the gap between low-cost carriers and traditional ones. The effects for the shipping sector will be equally dramatic. Freight rates in container shipping have rapidly declined and in recent weeks we have been seeing a significant downturn in cargo from China to the west. This is happening against a background of increased capacity coming on to the market. The cost of debt to finance ordered ships will further add to the cost burden of the shippers. Bus and rail companies tend to be counter-cyclical and have seen an increase in revenues as cash-strapped travelers switch to public transport. However, as redundancies mount, especially in high-density commuter areas, bus and rail companies will suffer a loss of revenue. In general, though, the sector is better positioned as it is partially underpinned by government contracts - in contrast to shipping or aviation. In the UK we may now see a serious threat to important infrastructure projects as the government diverts resources to shore up the banking sector. Existing transport infrastructure such as airports and seaports are already seeing a reduction in "fees and user charges" while costs remain static or increasing. Interestingly, outside of the UK we might see an acceleration of the privatization of public sector assets. The CEE, for example, might try to move forward plans to sell some of the state owned transport assets in order to raise much needed funds for the banking sector. This could be a good time for the infrastructure funds and sovereign wealth funds to strike some good deals. We might also see pension funds move to infrastructure as long term investments as they seek safe havens from the turmoil of the equity markets." About KPMG LLP (UK) KPMG LLP (UK) -- http://kpmg.co.uk/-- provides professional services including audit, tax, financial and risk advisory. KPMG in the UK has over 10,000 partners and staff working in 22 offices and is part of a strong global network of members firms. As part of KPMG Europe it has merged with its German and Swiss firms, making it the largest integrated accounting firm in Europe. * KPMG Notes Impact of Credit Crunch on Global Shipping Sector -------------------------------------------------------------- John Luke, KPMG's Global Head of Shipping comments on the impact of the credit crunch on the sector: "The seizure of the credit markets has lead to a tightening of the credit available for the day to day operation of the sector - letters of credit, or trade credit, required to finance individual cargos, has dried up because of the financial sector crisis. Even before the collapse of freight rates, questions were being asked about the bankability of the new building order book. Just how much of the debt required to fund the orders could actually be raised? Some might have viewed this as a necessary release of the supply side pressure that has built up during the 'super cycle'. While deposits would be lost and no doubt contractual disputes generated in the shipping sector, the pain would inevitably be shared with the yards. But more worrying than all of this is the descending gloom around the 'real economy'. The first to fall was demand on the box trades from the Far East as the western economies slowed. The cost of shipping a container from China to Europe has fallen from US$1300 to less than US$400 as the liner companies fight to fill space in a market where the conferences can no longer influence supply. The next to crumble has been the dry bulk market. The Baltic index is at a 5 year low and, having hit close to US$250k per day earlier in the year, the daily cost of chartering a capesize vessel is now around a tenth of that, and still falling. With crude oil price and demand under pressure that sector may be next. This slump in demand has caused announcements of container ship and dry bulk lay-ups from some owners and applies more doubt on the demand for future deliveries of new build. So the super cycle may well have ended and yards, owners and operators are again facing tough times. The fact that you might buy a brand new capesize now for less than half the price payable a year ago, or for the equivalent of an ageing VLCC (oil tanker) conversion, shows how the economics and asset values have changed. Volatility and uncertainty have returned and only the most astute and best resourced players will continue to prosper, or survive. Whether in the paper (derivatives) or physical market, or in the financing or delivery of new builds, counterparty risk is back. Those with strong balance sheets and limited commitments, plus a healthy time charter balance to credit worthy charter parties will survive. All should be addressing the efficiency of their supply chain (including tax cost) and their management of working capital – and not necessarily counting on the availability of their undrawn facilities." About KPMG LLP (UK) KPMG LLP (UK) -- http://kpmg.co.uk/-- provides professional services including audit, tax, financial and risk advisory. KPMG in the UK has over 10,000 partners and staff working in 22 offices and is part of a strong global network of members firms. As part of KPMG Europe it has merged with its German and Swiss firms, making it the largest integrated accounting firm in Europe. * PwC Suggests Three-Point Approach to UK Pension Management ----------------------------------------------------------- With unprecedented market turbulence affecting pension scheme financial health, businesses must take a more commercially-focused approach to assessing and addressing their pension obligations and risks, says PricewaterhouseCoopers LLP. The firm suggests a three-point plan to help companies take control of their pensions commitments. First, businesses with defined benefit pension plans should treat them as if they were business subsidiaries of the same value, and allocate resources to the management of pension risk commensurate with that approach. Raj Mody, partner, PricewaterhouseCoopers LLP, commented: "If a pension scheme was a business subsidiary of similar value, it would be managed with regular management meetings and reporting, a focus on ensuring the right skillsets and resources were deployed, frequent review of risks, speedy implementation of decisions and actions to improve the business. Companies should extend this approach to their UK pension schemes." Second, pension scheme risks and financial assessments should be expressed in measures relevant to the sponsoring company's financial position, not just in terms of the pension scheme position. This means taking into account measures such as credit rating, share price, profitability and balance sheet. Raj Mody, partner, PricewaterhouseCoopers LLP, commented: "Looking at a scheme's financial or risk position in isolation is not meaningful – companies must relate this assessment back to how it affects the sponsoring company's operation. "If a pension scheme's funding ratio of assets to liabilities drops by 20% but the company could write a check then and there for the difference, it is not necessarily a matter for great concern. But if a 5% drop in pension scheme funding ratio would wipe out the company's annual profitability, that matters." Third, companies should take a more active role in establishing pension scheme investment strategy. Legislation should be amended so this strategy has to be set with the formal agreement of the sponsoring company and not just by the trustees in consultation with the sponsor. Raj Mody, partner, PricewaterhouseCoopers LLP, commented: "Funding and investment strategy are two sides of the same coin – namely, how much money is needed and what to do with that money. Many companies leave their scheme trustees to lead discussions on the investment side of the equation meaning their scheme's risk to reward balance is not always aligned with the business – to the company's detriment if the strategy does not deliver. In addition, there may be efficiencies which can be extracted by using skills within the company's own departments, such as treasury, risk management and financing. "While setting investment strategy remains the pension scheme trustees' legal responsibility, more active company involvement and intervention would help ensure strategies are appropriate to that business." About PricewaterhouseCoopers LLP PricewaterhouseCoopers LLP -- http://www.pwc.co.uk/-- provides industry-focused assurance, tax and advisory services. It has more than 16,000 partners and staff in offices around the UK. * BOND PRICING: For the Week Oct. 13 to Oct. 17, 2008 ------------------------------------------------------ Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- AUSTRIA ------- Republic of Austria 1.000 06/22/22 EUR 68.83 CYPRUS ------ Alfa MTN Iss 7.875 10/10/09 USD 74.43 Abh Financial Lt 8.200 06/25/12 USD 94.90 Alfa MTN Invest 9.250 06/24/13 USD 62.34 FRANCE ------ Alcatel S.A. 4.750 01/01/11 EUR 12.73 6.375 04/07/14 EUR 71.92 Altran Technologies S.A. 3.750 01/01/09 EUR 12.72 BNP Paribas 0.250 12/20/14 USD 73.35 Bouygues 4.250 07/22/20 EUR 73.70 5.500 10/06/26 GBP 73.01 Calyon 6.000 06/18/47 EUR 36.74 Credit Agricole 3.750 10/20/20 EUR 74.78 Soc Air France 2.750 04/01/20 EUR 18.51 Wavecom S.A. 1.750 01/01/14 EUR 19.21 GERMANY ------- Bayer AG 6.000 04/10/12 EUR 100.10 5.000 07/29/05 EUR 67.05 IRELAND ------- Alfa Bank 8.625 12/09/15 USD 72.35 Allied Irish Bks 5.625 11/29/30 GBP 63.45 5.250 09/10/25 GBP 66.90 Ardagh Glass 7.125 06/15/17 EUR 62.625 Banesto Finance Plc 6.120 11/07/37 EUR 6.12 Bank of Ireland 4.625 02/27/19 EUR 77.18 Bank Soyuz 9.375 02/16/10 USD 54.96 LUXEMBOURG ---------- Acergy SA 2.250 10/11/13 USD 54.03 AK Bars Bank 8.250 06/28/10 USD 98.98 Alrosa Finance 8.875 11/17/14 USD 72.58 Bank of Moscow 7.335 05/13/13 USD 99.27 7.500 11/25/15 USD 54.87 6.807 05/10/17 USD 44.87 Beverage Pack 9.500 06/15/17 EUR 55.62 8.000 12/15/16 EUR 66.20 Breeze 4.524 04/19/27 EUR 74.66 NETHERLANDS ----------- ABN Amo Bank B.V. 4.650 06/04/18 USD 79.00 8.060 01/13/20 USD 30.50 6.000 03/16/35 EUR 54.55 Air Berlin Finance B.V. 1.500 04/11/27 EUR 25.02 ALB Finance BV 9.000 11/22/10 USD 37.34 8.750 04/20/11 USD 34.92 7.875 02/01/12 EUR 29.93 9.250 09/25/13 USD 34.89 Ardagh Glass Fin 8.875 07/01/13 EUR 74.12 Astana Finance 7.875 06/08/10 EUR 67.43 ATF Capital BV 9.250 02/21/14 USD 63.57 9.250 09/25/13 USD 47.33 Biopetrol Finance 4.000 02/21/12 EUR 47.50 BK Ned Gemeenten 0.500 06/27/18 CDN 66.49 0.500 02/24/25 CDN 45.98 Centercrdt Intl 8.625 01/30/14 USD 49.86 8.000 02/02/11 USD 97.53 JSC Bank Georgia 9.000 02/08/12 USD 66.54 Turanalem Fin BV 7.875 06/02/10 USD 98.54 6.250 09/27/11 EUR 72.29 7.750 04/25/13 USD 45.16 8.000 03/24/14 USD 37.16 8.500 02/10/15 USD 42.32 8.250 01/22/37 USD 47.13 8.250 01/22/37 USD 75.61 ROMANIA ------- Bucharest 4.125 06/22/15 EUR 75.61 RUSSIA ------ Sistema Capital 8.875 01/28/11 USD 74.45 SPAIN ----- Auvisa 4.790 12/15/27 EUR 70.30 Ayt Cedulas Caja 3.750 12/14/22 EUR 74.61 3.750 06/30/25 EUR 71.74 4.750 05/25/27 EUR 81.18 UKRAINE ------- Azovstal 9.125 02/28/11 USD 79.55 UNITED KINGDOM -------------- Amlin Plc 6.500 12/19/26 GBP 70.51 Anglian Water Finance Plc 2.400 04/20/35 GBP 47.51 Aspire Defence 4.670 03/31/40 GBP 59.21 4.670 03/31/40 GBP 59.17 Aviva Plc 6.875 05/20/58 GBP 78.49 Bank Of India 6.625 09/22/21 USD 69.06 Barclays Bank Plc 11.650 05/20/10 USD 60.50 5.700 07/14/25 USD 67.98 5.750 09/14/26 GBP 79.17 Beazley Group 7.250 10/17/26 GBP 71.00 BL Super Finance 5.578 10/04/25 GBP 72.72 Bradford&Bin BLD 4.875 06/28/17 EUR 90.06 5.750 12/12/22 GBP 9.97 4.910 02/01/47 EUR 67.99 Brit Insurance 6.630 12/09/30 GBP 65.20 British Sky Broadcasting 6.000 0 5/21/27 GBP 75.57 Britannia Building Society 5.875 03/28/33 GBP 64.24 5.750 12/02/24 GBP 67.40 British Land Co 5.005 09/24/35 GBP 71.37 British Tel Plc 5.750 12/07/28 GBP 74.96 Brixton Plc 6.000 09/30/19 GBP 77.67 Broadgate Finance 4.999 10/05/31 GBP 71.54 5.098 04/05/33 GBP 65.91 4.821 07/05/33 GBP 74.36 CGNU Plc 6.125 11/16/26 GBP 68.46 ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers' public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than US$3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Thursday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/booksto order any title today. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter -- Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Zora Jayda Zerrudo Sala, Pius Xerxes Tovilla, Joy Agravante, Melanie Pador, Marie Therese V. Profetana and Peter A. Chapman, Editors. Copyright 2008. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$625 per half-year, delivered via e-mail. 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